-----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, HbbI9eMFI8OntUpMYx9xnBDAviXPYmoZQSZ+mUSoLo7Bq4GnvrKziS33EAI9TMjC MS9TArKdgQG0hE2NLjCHAg== 0000950152-02-007154.txt : 20020923 0000950152-02-007154.hdr.sgml : 20020923 20020923172900 ACCESSION NUMBER: 0000950152-02-007154 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020923 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020923 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JLG INDUSTRIES INC CENTRAL INDEX KEY: 0000216275 STANDARD INDUSTRIAL CLASSIFICATION: CONSTRUCTION MACHINERY & EQUIP [3531] IRS NUMBER: 251199382 STATE OF INCORPORATION: PA FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12123 FILM NUMBER: 02770408 BUSINESS ADDRESS: STREET 1: 1 JLG DR CITY: MCCONNELLSBURG STATE: PA ZIP: 17233 BUSINESS PHONE: 7174855161 8-K 1 j9639701e8vk.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) September 23, 2002 JLG INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Commission file number: 0-8454 PENNSYLVANIA 25-1199382 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1 JLG DRIVE, MCCONNELLSBURG, PA 17233-9533 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (7l7) 485-5161 Not Applicable (Former name or former address, if changed since last report) Item 5. Other Events. A copy of the press release of JLG Industries, Inc. with respect to results for the fourth quarter and year-end 2002 is filed as Exhibit 99.1 hereto and is incorporated herein by reference. Item 7. Financial Statements and Exhibits. (c) Exhibits 99.1 Text of the Company's press release dated September 23, 2002 with respect to results for the fourth quarter and year-end 2002. 2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. JLG INDUSTRIES, INC. (Registrant) Date: September 23, 2002 /s/ James H. Woodward, Jr. ---------------------------- James H. Woodward, Jr. Executive Vice President and Chief Financial Officer 3 EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Text of the Company's press release dated September 23, 2002 with respect to results for the fourth quarter and year-end 2002. 4 EX-99.1 3 j9639701exv99w1.txt PRESS RELEASE Exhibit 99.1 [JLG Logo] PRESS RELEASE FOR IMMEDIATE RELEASE JLG INDUSTRIES, INC. 1 JLG Drive CONTACT: JUNA ROWLAND McConnellsburg, PA 17233-9533 DIRECTOR - CORPORATE & INVESTOR RELATIONS Telephone (717) 485-5161 (240) 313-1816, IR@JLG.COM Fax (717) 485-6417 www.jlg.com JLG REPORTS FOURTH QUARTER AND YEAR-END RESULTS COMPANY REALIGNS COST AND CAPITAL STRUCTURES MCCONNELLSBURG, PA, SEPTEMBER 23, 2002 - JLG Industries, Inc. (NYSE: JLG) today announced results for its fiscal fourth quarter ended July 31, 2002 with revenues of $249 million, down 12 percent compared to prior year revenues of $282 million. Net income before the cumulative effect of change in accounting principle was $8.3 million or $0.19 per diluted share compared to $5.6 million or $0.13 per diluted share for the prior year period. Excluding restructuring and repositioning charges previously discussed by the Company, net income for the quarter was $8.4 million or $0.19 per diluted share before the cumulative effect of change in accounting principle, compared to $15.6 million or $0.37 per diluted share for the prior year period. Free cash flow, including limited recourse portfolio syndications by Access Financial Solutions ("AFS"), was $16.5 million, an improvement of $30.6 million over last year's $14.1 million use of cash for the fiscal fourth quarter. During the quarter, JLG completed its review of goodwill for impairment in accordance with the requirements of SFAS No. 142 "Goodwill and Other Intangible Assets," which discontinues amortization of acquired goodwill and instead requires annual impairment testing. As a result, JLG recorded a transitional impairment loss of $114 million or $2.60 per diluted share for the fourth quarter ($2.65 per diluted share for the year), primarily associated with the Gradall acquisition in 1999. This non-cash write-off was reported as a cumulative effect of change in accounting principle in JLG's Consolidated Statements of Income. Full fiscal year revenues were $770 million, down 20 percent compared with $964 million last year. Net income for the year before the cumulative effect of change in accounting principle and excluding restructuring and associated charges in both periods was $17.4 million or $0.40 per diluted share compared to $44.2 million or $1.04 per diluted share in the prior year. Free cash flow was $163 million for the full year compared to last year's $201 million use of cash. Net debt, including off-balance sheet trade receivable securitization and equipment leases but excluding limited recourse AFS debt, was reduced by $170 million. During the fourth quarter, the Company successfully completed the issuance of $175 million in new senior subordinated 10-year notes and restructured $275 million in senior credit facilities. "During fiscal year 2002, we enhanced our competitive position and strengthened our balance sheet," stated Bill Lasky, Chairman of the Board, President and Chief Executive Officer. "There were numerous (more) JLG Industries, Inc. - page 2 economic events this year such as terrorist attacks, high profile bankruptcies and accounting scandals, all of which contributed to mixed economic signals and a resulting conservative approach by our major customers to fleet expansion or replacement. We continue to focus on what is within our control in the short-term while keeping an eye to the future. Despite a 20 percent reduction in revenues, we generated significant free cash flow and recapitalized our balance sheet to accommodate future growth. We lowered our cost structure by completing the closure of two facilities made possible by increased productivity, outsourcing of non-core operations, and movement of some production to Europe. We have been able to manage our business successfully in the downturn by concentrating on process efficiencies, generating free cash flow and reducing debt." FOURTH QUARTER FINANCIAL SUMMARY o North American revenues were $182 million, 9 percent lower than the same period last year. o European revenues were $57.4 million, down 10 percent from the prior-year fourth quarter. o Aerial work platform sales were $159 million, down 22 percent compared with the year-ago quarter. o Telehandler sales were $34.1 million, 26 percent higher year-on-year. o Excavator sales were $14.5 million, down 30 percent compared to last year. o Selling, administrative and product development expenses were up 10 percent year-on-year. o Free cash flow was $16.5 million (including Access Financial Solutions limited recourse portfolio syndications), an improvement of $30.6 million over last year's $14.1 million use of cash. YEAR-END FINANCIAL SUMMARY o North American revenues were $570 million, down 22 percent compared to the prior year. o European revenues were $168 million, down 11 percent compared to the prior year. o Free cash flow was $163 million (including Access Financial Solutions limited recourse portfolio syndications), an improvement of $364 million over last year's $201 million use of cash. o Excluding the Access Financial Solutions limited recourse liability, net debt was reduced by $170 million. o Trade working capital was reduced by $89.6 million. FINANCIAL OVERVIEW Jim Woodward, Executive Vice President and Chief Financial Officer, commented, "Excluding restructuring and repositioning charges in both periods, fourth quarter gross profit margins were 17.4 percent compared to 20.3 percent in the prior year, primarily reflecting the impact of lower sales volume relative to fixed manufacturing costs. A more competitive customer-pricing environment for new equipment resulted in increased discounts while a weak used equipment market translated to a lower margin on used equipment sales. These were offset in part by the favourable effects of a weaker U.S. Dollar particularly against the Euro. Due to the increased population of JLG equipment in the field, product liability and warranty charges as a percent of sales continued a negative trend, impacting margins by 80 basis points compared to last year's level. (more) JLG Industries, Inc. - page 3 "Selling, administrative and product development expenses in the fourth quarter increased to 12 percent of sales compared to 9.2 percent in the prior period primarily reflecting decreased sales volume as well as increases in loss reserves for trade receivables. Although customer delinquency rates remain low, the current economic situation in both Europe and North America required a prudent corresponding increase in contingent loss reserves. This increase in selling, administrative and product development expenses was offset in part by the elimination of goodwill amortization consistent with the Company's early adoption of SFAS No. 142 mentioned previously. "Completing its first full year of operations, Access Financial Solutions successfully monetized more than $100 million of leases with traditional third-party lenders in fiscal 2002, turning its entire portfolio nearly one time. This was a primary goal in its plan to become a self-funding organization and to not rely entirely on the strength of JLG's balance sheet for future customer financing. Additionally, AFS has arranged for approximately $70 million through third-party financing sources primarily for our European customers. The finance receivables of AFS represent secured financing, collateralized by the underlying value of JLG equipment." During the fourth quarter, the Company sold $175 million principal amount of 8 3/8 percent senior subordinated notes due 2012 and amended its $275 million in senior credit facilities to provide greater flexibility for the Company's operations. The net proceeds of the offering were used to repay outstanding debt under the Company's existing $250 million revolving credit facility and to terminate the Company's $83 million working capital facility. The Company also maintains a separate $25 million bank overdraft facility. Woodward further noted, "The amended and restated senior credit facilities as implemented during the fourth quarter and further revised late last month improve our flexibility to fund ongoing operations, including continued funding of our customer finance offerings through our Access Financial Solutions subsidiary. Both the 10-year notes and our senior credit facilities are important parts in our capital structure tailored to support our long-term strategic financial plan." OUTLOOK Commenting on the upcoming fiscal year, Lasky said, "While uncertain economic conditions remain as we enter the first half of our new fiscal year, we remain committed to access industry leadership by providing innovative, cost-effective and reliable equipment to our end-users. Traditionally our weakest seasonal period, the next two fiscal quarters will be very challenging. Although visibility at present is limited, our current forecast includes the assumption of a stronger economy in the spring and summer of calendar 2003. Many of our customers have aged their fleets during this downturn, and we expect they will need to begin to refresh their equipment when the economy improves. As we have stated in the past, the replacement cycle is dependent on three factors. First, there must be a healthy non-residential construction market. Next, the secondary market for used equipment must be healthy, enabling our customers to turn their used assets at acceptable values. Finally, there must be available financing for our customers' fleet acquisition plans "While we cannot predict the exact timing of an economic recovery, with fewer competitors, a lower cost (more) JLG Industries, Inc. - page 4 structure and decreased leverage, JLG is well positioned to take advantage of the eventual upturn. In the meantime, we will continue to focus on the balance sheet, to look for opportunistic acquisitions and to maintain our industry leadership position." CONFERENCE CALL The Company will host a conference call today, Monday, September 23, 2002 at 11:00 a.m. Eastern Time. Dial-in number is (800) 289-0485, access code 508697. Please dial into the conference 10 minutes prior to the start. An accompanying slide presentation along with audio of the call is also available via the Internet at www.jlg.com. A recording of this conference call will be available at (888) 203-1112 access code 508697 until midnight on October 7, 2002. JLG Industries, Inc. is the world's leading producer of mobile aerial work platforms and a leading producer of telehandlers and telescopic hydraulic excavators marketed under the JLG(R) and Gradall(R) trademarks. Sales are made principally to rental companies and distributors that rent and sell the Company's products to a diverse customer base, which include users in the industrial, commercial, institutional and construction markets. JLG's manufacturing facilities are located in the United States and Belgium, with sales and service locations on six continents. For more information, visit www.jlg.com. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance, and involve a number of risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the following: (i) general economic and market conditions, including political and economic uncertainty in areas of the world where we do business; (ii) varying and seasonal levels of demand for our products and services; (iii) limitations on customer access to credit for purchases; (iv) credit risks from our financing of customer purchases; (v) interest and foreign currency exchange rates; (vi) costs of raw materials and energy; and (vii) our ability to securitize or otherwise monetize assets, including customer finance receivables, 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, 2002. Results before restructuring and repositioning charges and cumulative change in accounting principle, AFS operations as if accounted for under the equity method, as well as our determinations of free cash flow and net debt are useful in analyzing operating performance, but should be used only in conjunction with financial performance reported in accordance with generally accepted accounting principles. The selected supplemental consolidated data depicting AFS operations as if accounted for under the equity method and submitted with our consolidated financial statements is presented for the sole purpose of facilitating the analysis of the results of our Equipment Operations and Financial Services businesses as included in the consolidated financial statements. These two operations are engaged in fundamentally different businesses and cannot be easily analyzed on a consolidated basis. Equipment Operations includes the operations of our Machinery and Equipment Services segments with Financial Services reflected on an equity basis. Access Financial Solutions consists of our financial services businesses. (Tables follow) JLG Industries, Inc. - page 5 JLG INDUSTRIES, INC. CONSOLIDATED SELECTED SUPPLEMENTAL INFORMATION (in thousands)(unaudited)
Three Months Ended Fiscal Year Ended July 31, July 31, SEGMENT INFORMATION 2002 2001 2002 2001 ---- ---- ---- ---- Revenues: Machinery $ 207,267 $ 250,659 $ 621,283 $ 835,893 Equipment Services 36,463 28,281 133,058 122,650 Access Financial Solutions 5,094 2,656 15,729 5,329 --------- --------- --------- --------- $ 248,824 $ 281,596 $ 770,070 $ 963,872 ========= ========= ========= ========= Segment profit (loss): Machinery $ 20,845 $ 15,314 $ 29,038 $ 78,501 Equipment Services 1,968 4,699 24,686 25,268 Access Financial Solutions 1,816 1,214 5,288 (223) General corporate expenses (13,099) (6,657) (33,347) (30,797) --------- --------- --------- --------- $ 11,530 $ 14,570 $ 25,665 $ 72,749 ========= ========= ========= ========= PRODUCT GROUP REVENUES Aerial work platforms $ 158,668 $ 202,900 $ 475,241 $ 682,689 Telehandlers 34,115 27,053 87,443 87,704 Excavators 14,484 20,706 58,599 65,500 After-sales service and support, including parts sales, and used and reconditioned equipment sales 34,633 26,138 124,587 116,376 Financial products 4,841 1,994 14,227 3,889 Rentals 2,083 2,805 9,973 7,714 --------- --------- --------- --------- $ 248,824 $ 281,596 $ 770,070 $ 963,872 ========= ========= ========= ========= GEOGRAPHIC REVENUES United States $ 178,034 $ 188,731 $ 556,252 $ 709,412 Europe 57,410 63,515 167,940 187,924 Other international 13,380 29,350 45,878 66,536 --------- --------- --------- --------- $ 248,824 $ 281,596 $ 770,070 $ 963,872 ========= ========= ========= ========= FREE CASH FLOW Cash flow from net income plus non-cash charges $ 8,863 $ 12,587 $ 29,263 $ 68,714 Accounts receivable (1) (23,116) 7,594 10,490 (12,149) Inventory (1,993) 87,122 24,462 (41,807) Finance receivables (2) 27,295 (93,395) 54,511 (132,790) Other assets and liabilities 1,670 (13,591) 39,743 (48,519) Purchases of PP&E (2,708) (5,337) (12,954) (15,787) Proceeds from sale of PP&E 22 293 172 416 Purchases of equipment held for rental (5,652) (12,391) (26,429) (33,406) Proceeds from sales of equipment held for rental 7,710 3,622 28,924 31,251 Proceeds from sale of joint venture -- -- -- 4,000 Other (1) 4,424 (597) 15,178 (21,019) --------- --------- --------- --------- Free cash flow $ 16,515 $ (14,093) $ 163,360 $(201,096) ========= ========= ========= =========
(1) Includes changes in accounts receivable securitization and other off-balance sheet debt. (2) Excludes pledged receivable monetization. (more) JLG Industries, Inc. - page 6 JLG INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited)
Three Months Ended Three Months Ended July 31, July 31, 2002 2002 2001 2001 ---- ---- ---- ---- As reported As adjusted(1) As reported As adjusted(2) Revenues Net sales $ 241,900 $ 241,900 $ 276,797 $ 276,797 Financial products 4,841 4,841 1,994 1,994 Rentals 2,083 2,083 2,805 2,805 --------- --------- --------- --------- 248,824 248,824 281,596 281,596 Cost of sales 205,594 205,474 233,945 224,453 --------- --------- --------- --------- Gross profit 43,230 43,350 47,651 57,143 Selling and administrative expenses 25,644 25,644 23,500 22,500 Product development expenses 4,183 4,183 3,516 3,516 Goodwill amortization -- -- 1,544 1,544 Restructuring -- -- 4,402 -- --------- --------- --------- --------- Income from operations 13,403 13,523 14,689 29,583 Interest expense (4,545) (4,545) (5,752) (5,752) Miscellaneous, net 3,592 3,592 18 955 --------- --------- --------- --------- Income before taxes and cumulative effect of change in accounting principle 12,450 12,570 8,955 24,786 Income tax provision 4,108 4,148 3,315 9,171 --------- --------- --------- --------- Income before cumulative effect of change in accounting principle 8,342 8,422 5,640 15,615 Cumulative effect of change in accounting principle (114,470) (114,470) -- -- --------- --------- --------- --------- Net (loss) income $(106,128) $(106,048) $ 5,640 $ 15,615 ========= ========= ========= ========= Earnings (loss) per common share: Earnings per common share before cumulative effect of change in accounting principle $ .20 $ .20 $ .14 $ .38 Cumulative effect of change in accounting principle (2.70) (2.70) -- -- --------- --------- --------- --------- (Loss) earnings per common share $ (2.50) $ (2.50) $ .14 $ .38 ========= ========= ========= ========= Earnings (loss) per common share - assuming dilution: Earnings per common share before cumulative effect of change in accounting principle $ .19 $ .19 $ .13 $ .37 Cumulative effect of change in accounting principle (2.60) (2.60) -- -- --------- --------- --------- --------- (Loss) earnings per common share - assuming dilution $ (2.41) $ (2.41) $ .13 $ .37 ========= ========= ========= ========= Cash dividends per share $ .005 $ .005 $ .01 $ .01 ========= ========= ========= ========= Weighted average shares outstanding 42,492 42,492 41,558 41,558 ========= ========= ========= ========= Weighted average shares outstanding - assuming dilution 43,950 43,950 42,088 42,088 ========= ========= ========= =========
(1) The "As adjusted" column excludes $120 of restructuring associated charges. (2) The "As adjusted" column excludes $15,831 of repositioning and restructuring charges. (more) JLG Industries, Inc. - page 7 JLG INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands, except per share data)
Fiscal Year Ended Fiscal Year Ended July 31, July 31, 2002 2002 2001 2001 ---- ---- ---- ---- As reported As adjusted(1) As reported As adjusted(2) Revenues Net sales $ 745,870 $ 745,870 $ 952,269 $ 952,269 Financial products 14,227 14,227 3,889 3,889 Rentals 9,973 9,973 7,714 7,714 --------- --------- --------- --------- 770,070 770,070 963,872 963,872 Cost of sales 637,983 637,359 775,078 765,586 --------- --------- --------- --------- Gross profit 132,087 132,711 188,794 198,286 Selling and administrative expenses 79,693 79,693 89,145 88,145 Product development expenses 15,586 15,586 15,440 15,440 Goodwill amortization -- -- 6,052 6,052 Restructuring 6,091 -- 4,402 -- --------- --------- --------- --------- Income from operations 30,717 37,432 73,755 88,649 Interest expense (16,255) (16,255) (22,195) (22,195) Miscellaneous, net 4,759 4,759 2,737 3,675 --------- --------- --------- --------- Income before taxes and cumulative effect of change in accounting principle 19,221 25,936 54,297 70,129 Income tax provision 6,343 8,559 20,091 25,948 --------- --------- --------- --------- Income before cumulative effect of change in accounting principle 12,878 17,377 34,206 44,181 Cumulative effect of change in accounting principle (114,470) (114,470) -- -- --------- --------- --------- --------- Net (loss) income $(101,592) $ (97,093) $ 34,206 $ 44,181 ========= ========= ========= ========= Earnings (loss) per common share: Earnings per common share before cumulative effect of change in accounting principle $ .31 $ .41 $ .81 $ 1.05 Cumulative effect of change in accounting principle (2.72) (2.72) -- -- --------- --------- --------- --------- (Loss) earnings per common share $ (2.41) $ (2.31) $ .81 $ 1.05 ========= ========= ========= ========= Earnings (loss) per common share - assuming dilution: Earnings per common share before cumulative effect of change in accounting principle $ .30 $ .40 $ .80 $ 1.04 Cumulative effect of change in accounting principle (2.65) (2.65) -- -- --------- --------- --------- --------- (Loss) earnings per common share - assuming dilution $ (2.35) $ (2.25) $ .80 $ 1.04 ========= ========= ========= ========= Cash dividends per share $ .025 $ .025 $ .04 $ .04 ========= ========= ========= ========= Weighted average shares outstanding 42,082 42,082 42,155 42,155 ========= ========= ========= ========= Weighted average shares outstanding - assuming dilution 43,170 43,170 42,686 42,686 ========= ========= ========= =========
(1) The "As adjusted" column excludes the $6,091 restructuring and $624 associated charges. (2) The "As adjusted" column excludes $15,831 of repositioning and restructuring charges. (more) JLG Industries, Inc. - page 8 JLG INDUSTRIES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands, except per share data)
July 31, July 31, 2002 2001 ---- ---- ASSETS Current assets Cash and cash equivalents $ 6,205 $ 9,254 Accounts receivable (1) 227,809 189,913 Finance receivables 27,529 16,760 Pledged finance receivables 34,985 -- Inventories 165,536 189,841 Other current assets 31,042 18,787 --------- --------- Total current assets 493,106 424,555 Property, plant and equipment 84,370 98,403 Equipment held for rental 20,979 20,002 Finance receivables, less current portion 45,412 115,071 Pledged finance receivables, less current portion 53,703 -- Goodwill 28,791 140,164 Other assets 51,880 27,394 --------- --------- $ 778,241 $ 825,589 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term debt $ 14,427 $ 22,193 Current portion of limited recourse debt 34,850 -- Accounts payable 129,317 76,723 Accrued expenses 83,309 70,887 --------- --------- Total current liabilities 261,903 169,803 Long-term debt, less current portion 177,331 276,994 Limited recourse debt, less current portion 52,721 -- Accrued post-retirement benefits 24,989 23,757 Other long-term liabilities 10,807 9,601 Provisions for contingencies 14,448 11,993 Shareholders' equity Capital stock: Authorized shares: 100,000 at $.20 par value Outstanding shares: 2002 - 42,728; 2001 - 42,144 8,546 8,429 Additional paid-in capital 18,846 14,256 Retained earnings 216,957 319,607 Unearned compensation (1,649) (3,377) Accumulated other comprehensive income (6,658) (5,474) --------- --------- Total shareholders' equity 236,042 333,441 --------- --------- $ 778,241 $ 825,589 ========= =========
(1) Net of accounts receivable securitization of $0 at July 31, 2002 and $50,600 at July 31, 2001. (more) JLG Industries, Inc. - page 9 JLG INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (in thousands)
Fiscal Year Ended July 31, 2002 2001 ---- ---- OPERATIONS Net (loss) income $(101,592) $ 34,206 Adjustments to reconcile net income to cash flow from operating activities: Gain from sale of joint venture -- (1,008) Loss on sale of property, plant and equipment 392 2,770 Gain on sale of equipment held for rental (8,049) (3,371) Non-cash charges and credits: Cumulative effect of change in accounting principle 114,470 -- Depreciation and amortization 20,959 28,775 Other 6,997 6,596 Changes in selected working capital items: Accounts receivable (1) (40,110) (18,949) Inventories 24,462 (41,807) Accounts payable 52,685 (39,897) Other operating assets and liabilities 15,194 (2,900) Changes in finance receivables (34,177) (132,790) Changes in other assets and liabilities (28,136) (5,722) --------- --------- Cash flow from operating activities 23,095 (174,097) INVESTMENTS Purchases of property, plant and equipment (12,954) (15,787) Proceeds from sale of property, plant and equipment 172 416 Purchases of equipment held for rental (26,429) (33,406) Proceeds from sale of equipment held for rental 28,924 31,251 Proceeds from sale of joint venture -- 4,000 Other 405 (5,540) --------- --------- Cash flow from investing activities (9,882) (19,066) FINANCING Net (decrease) increase in short-term debt (7,771) 13,009 Issuance of long-term debt 617,000 571,505 Repayment of long-term debt (717,572) (383,629) Issuance of limited recourse debt 90,214 -- Payment of dividends (1,058) (1,699) Purchase of common stock -- (22,201) Exercise of stock options and issuance of restricted awards 3,732 (126) --------- --------- Cash flow from financing activities (15,455) 176,859 CURRENCY ADJUSTMENTS Effect of exchange rate changes on cash (807) 102 --------- --------- CASH Net change in cash and cash equivalents (3,049) (16,202) Beginning balance 9,254 25,456 --------- --------- Ending balance $ 6,205 $ 9,254 ========= =========
(1) Net of change in accounts receivable securitization of $50,600 for the period ending July 31, 2002 and $6,800 for the period ending July 31, 2001. (more) JLG Industries, Inc. - page 10 JLG INDUSTRIES, INC. SELECTED SUPPLEMENTAL INFORMATION CONDENSED STATEMENTS OF INCOME EQUIPMENT OPERATIONS WITH ACCESS FINANCIAL SOLUTIONS ON THE EQUITY BASIS (in thousands) (unaudited)
Three Months Ended Fiscal Year Ended July 31, July 31, 2002 2001 2002 2001 ---- ---- ---- ---- Revenues Net sales $ 241,900 $ 276,797 $ 745,870 $ 952,269 Rentals 1,830 2,143 8,471 6,274 --------- --------- --------- --------- 243,730 278,940 754,341 958,543 Cost of sales 205,457 233,418 637,065 773,871 --------- --------- --------- --------- Gross profit 38,273 45,522 117,276 184,672 Selling and administrative expenses 24,376 22,705 75,221 85,806 Product development expenses 4,183 3,516 15,586 15,440 Goodwill amortization -- 1,544 -- 6,052 Restructuring -- 4,402 6,091 4,402 --------- --------- --------- --------- Income from operations 9,714 13,355 20,378 72,972 Interest expense (2,672) (5,632) (11,204) (21,189) Miscellaneous, net 3,592 18 4,759 2,737 --------- --------- --------- --------- Income before taxes and cumulative effect of change in accounting principle 10,634 7,741 13,933 54,520 Income tax provision (3,509) (2,866) (4,598) (20,174) Equity in income (loss) of Access Financial Solutions 1,217 765 3,543 (140) --------- --------- --------- --------- Income before cumulative effect of change in accounting principle 8,342 5,640 12,878 34,206 Cumulative effect of change in accounting principle (114,470) -- (114,470) -- --------- --------- --------- --------- Net (loss) income $(106,128) $ 5,640 $(101,592) $ 34,206 ========= ========= ========= =========
JLG INDUSTRIES, INC. CONDENSED STATEMENTS OF INCOME ACCESS FINANCIAL SOLUTIONS (in thousands) (unaudited)
Three Months Ended Fiscal Year Ended July 31, July 31, 2002 2001 2002 2001 ---- ---- ---- ---- Revenues Financial products $ 4,841 $ 1,994 $14,227 $ 3,889 Rentals 253 662 1,502 1,440 ------- ------- ------- ------- 5,094 2,656 15,729 5,329 Operating expenses Administrative and other expenses 1,405 1,322 5,390 4,546 Interest expense 1,873 120 5,051 1,006 ------- ------- ------- ------- Total operating expenses 3,278 1,442 10,441 5,552 ------- ------- ------- ------- Income (loss) from operations 1,816 1,214 5,288 (223) Income tax provision 599 449 1,745 (83) ------- ------- ------- ------- Net income (loss) $ 1,217 $ 765 $ 3,543 $ (140) ======= ======= ======= =======
(more) JLG Industries, Inc. - page 11 JLG INDUSTRIES, INC. SELECTED SUPPLEMENTAL INFORMATION CONDENSED BALANCE SHEETS (in thousands)
Equipment Operations with Access Financial Solutions on the Equity Basis Access Financial Solutions -------------------------------- -------------------------- July 31, July 31, July 31, July 31, 2002 2001 2002 2001 ---- ---- ---- ---- ASSETS Current assets Cash and cash equivalents $ 6,205 $ 9,254 $ -- $ -- Accounts receivable, net 204,779 189,913 23,030 -- Finance receivables, net -- -- 27,529 16,760 Pledged finance receivables -- -- 34,985 -- Inventories 165,536 189,841 -- -- Other current assets 31,042 18,787 -- -- -------- -------- -------- -------- Total current assets 407,562 407,795 85,544 16,760 Property, plant and equipment 84,354 98,403 16 -- Finance receivables, less current portion -- -- 45,412 115,071 Pledged finance receivables, less current portion -- -- 53,703 -- Goodwill 28,791 140,164 -- -- Investment in Access Financial Solutions 33,403 29,860 -- -- Receivable from Access Financial Solutions 64,106 107,276 -- -- Other assets 70,381 42,091 2,478 5,305 -------- -------- -------- -------- $688,597 $825,589 $187,153 $137,136 ======== ======== ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term debt $ 14,427 $ 22,193 $ -- $ -- Current portion of limited recourse debt -- -- 34,850 -- Accounts payable 129,317 76,723 -- -- Accrued expenses 81,236 70,887 2,073 -- -------- -------- -------- -------- Total current liabilities 224,980 169,803 36,923 -- Long-term debt, less current portion 177,331 276,994 -- -- Limited recourse debt, less current portion -- -- 52,721 -- Accrued post-retirement benefits 24,989 23,757 -- -- Other long-term liabilities 10,807 9,601 -- -- Provisions for contingencies 14,448 11,993 -- -- Payable to JLG Industries, Inc. -- -- 64,106 107,276 Shareholders' equity 236,042 333,441 33,403 29,860 -------- -------- -------- -------- $688,597 $825,589 $187,153 $137,136 ======== ======== ======== ========
(more) JLG Industries, Inc. - page 12 JLG INDUSTRIES, INC. SELECTED SUPPLEMENTAL INFORMATION CONDENSED STATEMENTS OF CASH FLOWS (in thousands)
Equipment Operations with Access Financial Solutions on the Equity Basis Access Financial Solutions -------------------------------- ----------------------------- Fiscal Year Ended Fiscal Year Ended July 31, July 31, 2002 2001 2002 2001 ---- ---- ---- ---- Cash flow from operating activities $ 71,307 $ (44,043) $ (44,669) $(130,194) Cash flow from investing activities (11,050) (41,844) (2,375) (7,082) Cash flow from financing activities (62,499) 69,583 47,044 137,276 Effect of exchange rate changes on cash (807) 102 -- -- --------- --------- --------- --------- Net change in cash and cash equivalents (3,049) (16,202) -- -- Beginning balance 9,254 25,456 -- -- --------- --------- --------- --------- Ending balance $ 6,205 $ 9,254 $ -- $ -- ========= ========= ========= =========
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