-----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, NR5OeT6Smu4PZ5mFGn+P2wtRPHELT3+NrZBgP10J9F60dQWmRD7L0Q66ATCwDufW 3YIRmBEBtg/YkfwMDMsSYA== 0000950152-03-008686.txt : 20031009 0000950152-03-008686.hdr.sgml : 20031009 20031009095812 ACCESSION NUMBER: 0000950152-03-008686 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031003 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031009 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: 03934279 BUSINESS ADDRESS: STREET 1: 1 JLG DR CITY: MCCONNELLSBURG STATE: PA ZIP: 17233 BUSINESS PHONE: 7174855161 8-K 1 j0337901e8vk.txt JLG INDUSTRIES, INC. 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): October 3, 2003 JLG INDUSTRIES, INC. (Exact name of registrant as specified in its charter) PENNSYLVANIA 0-12123 25-1199382 (State or other jurisdiction of (Commission File Number) (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 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits. 99.1 Selected Financial Information. Item 12. Results of Operations and Financial Condition. The Company has made available on its website, www.jlg.com, selected financial information under "Investor Relations" - "Supplemental Information." The selected financial information made available on the Company's website is incorporated herein by reference as Exhibit 99.1. The information is not filed for purposes of the Securities Exchange Act of 1934 and is not deemed incorporated by reference by any general statements incorporating by reference this report or future filings into any filings under the Securities Act of 1933 or the Securities Act of 1934, except to the extent the Company specifically incorporates the information by reference. 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: October 9, 2003 /s/ James H. Woodward, Jr. ------------------------------------ James H. Woodward, Jr. Executive Vice President and Chief Financial Officer 3 EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Selected Financial Information. 4 EX-99.1 3 j0337901exv99w1.txt SELECTED FINANCIAL DATA Exhibit 99.1 [JLG INDUSTRIES, INC. LOGO] JLG INDUSTRIES, INC. Financial Dashboard
Full Year FY2003 $ in thousands except per share data FY 2003 Q4 Q3 Q2 Q1 --------------------------------------------------------------------- REVENUES Aerial work platforms $ 435,164 $ 148,144 $ 116,092 $ 79,615 $ 91,313 Telehandlers 119,536 37,674 34,843 19,417 27,602 Excavators 48,445 15,601 16,695 10,518 5,631 --------- --------- --------- --------- --------- Total Machinery $ 603,145 $ 201,419 $ 167,630 $ 109,550 $ 124,546 Equipment services 136,737 35,855 32,835 36,676 31,371 Access Financial Solutions (AFS) 19,907 4,945 5,305 5,087 4,570 --------- --------- --------- --------- --------- TOTAL REVENUES $ 759,789 $ 242,219 $ 205,770 $ 151,313 $ 160,487 ========= ========= ========= ========= ========= OPERATING INCOME Machinery $ 28,385 $ 16,573 $ 6,665 $ 168 $ 4,979 Equipment services 27,119 8,235 6,998 6,632 5,254 Access Financial Solutions 3,990 295 716 1,881 1,098 General corporate expenses (32,001) (10,356) (9,434) (6,475) (5,736) Add: AFS' interest expense 11,700 3,503 3,619 2,443 2,135 --------- --------- --------- --------- --------- TOTAL OPERATING INCOME $ 39,193 $ 18,250 $ 8,564 $ 4,649 $ 7,730 ========= ========= ========= ========= ========= PROFITABILITY Gross profit margin 18.1% 19.6% 16.8% 17.2% 18.1% Trailing twelve month EBITDA margin (1) 8.7% 8.7% 8.6% 7.8% 7.1% Operating margin 5.2% 7.5% 4.2% 3.1% 4.8% Net income margin(1) 1.9% 3.1% 1.1% 2.8% 0.2% REPORTED EPS PER DILUTED SHARE (1) $ .33 $ .17 $ .05 $ .10 $ .01 IMPACT OF SELECTED ITEMS ON: (2) income(expense) PRE-TAX INCOME Restructuring and repositioning charges (4,040) (859) (1,762) (1,256) (163) Currency effects (in Miscellaneous-net) 5,422 (697) 993 7,575 (2,449) Bad debt charges (in SA&PD) (7,024) (3,273) (1,318) (1,652) (781) Inventory charges (in COGS) (4,463) 1,905 (3,380) (1,944) (1,044) Incentive pay (in both COGS, SA&PD) (2,605) (876) (1,729) -- -- Deferred profit on sale-leaseback (in COGS) -- -- -- -- -- NET INCOME Restructuring and repositioning charges (2,747) (584) (1,198) (854) (111) Currency effects (in Miscellaneous-net) 3,687 (474) 675 5,151 (1,665) Bad debt charges (in SA&PD) (4,776) (2,226) (896) (1,123) (531) Inventory charges (in COGS) (3,035) 1,295 (2,298) (1,322) (710) Benefit from change in effective income tax rate 2,051 2,051 -- -- -- Incentive pay (in both COGS, SA&PD) (1,771) (596) (1,176) -- -- Deferred profit on sale-leaseback (in COGS) -- -- -- -- -- EPS Restructuring and repositioning charges (0.06) (0.01) (0.03) (0.02) -- Currency effects (in Miscellaneous-net) 0.09 (0.01) 0.02 0.12 (0.04) Bad debt charges (in SA&PD) (0.11) (0.05) (0.02) (0.03) (0.01) Inventory charges (in COGS) (0.07) 0.03 (0.05) (0.03) (0.02) Benefit from change in effective income tax rate 0.05 0.05 -- -- -- Incentive pay (in both COGS, SA&PD) (0.04) (0.01) (0.03) -- -- Deferred profit on sale-leaseback (in COGS) -- -- -- -- -- BALANCE SHEET & LIQUIDITY MEASURES Cash & cash equivalents $ 132,809 $ 132,809 $ 16,529 $ 9,565 $ 10,181 Accounts receivable, net 266,180 266,180 252,200 210,192 200,329 Finance receivable, net 34,324 34,324 28,936 79,458 99,766 Pledged finance receivables, net 160,407 160,407 167,089 113,656 86,700 Inventories 116,886 116,886 154,168 168,612 178,016 Total balance sheet debt 460,570 460,570 377,571 372,305 337,126 Limited recourse debt from finance receivables monetizations 164,940 164,940 164,653 106,662 83,188 Net debt (3) 171,103 171,103 206,361 266,913 255,627 Net debt (3) to total capitalization 41% 41% 46% 53% 52% Maximum loss exposure from finance receivables monetizations 21,708 21,708 18,928 8,519 6,275 Equity 249,497 249,497 245,034 241,760 235,897 Working capital 384,546 384,546 292,498 277,431 243,593 Trailing twelve month EBITDA (1) 65,821 65,821 65,709 60,118 54,726 Depreciation and amortization 19,937 4,591 4,931 5,147 5,268 Capital expenditures, net of retirements 10,324 2,662 2,942 3,076 1,644 Free cash flow (4) 27,781 35,258 60,553 (11,286) (56,744) FINANCIAL RATIOS Days sales outstanding 131.6 131.6 124.1 103.6 97.3 Days payables outstanding 70.8 70.8 75.8 36.0 59.2 Inventory turnover (annualized) 3.4 3.4 3.2 3.3 3.5 Full Year FY2002 $ in thousands except per share data FY 2002 Q4 Q3 Q2 Q1 --------------------------------------------------------------------- REVENUES Aerial work platforms $ 475,241 $ 158,667 $ 124,514 $ 89,693 $ 102,367 Telehandlers 87,443 34,115 20,600 18,624 14,104 Excavators 58,599 14,484 16,940 14,608 12,567 --------- --------- --------- --------- --------- Total Machinery $ 621,283 $ 207,266 $ 162,054 $ 122,925 $ 129,038 Equipment services 133,058 36,464 43,164 29,963 23,467 Access Financial Solutions (AFS) 15,729 5,094 3,514 3,464 3,657 --------- --------- --------- --------- --------- TOTAL REVENUES $ 770,070 $ 248,824 $ 208,732 $ 156,352 $ 156,162 ========= ========= ========= ========= ========= OPERATING INCOME Machinery $ 29,039 $ 20,845 $ 4,708 $ 465 $ 3,021 Equipment services 24,686 1,968 6,656 8,352 7,710 Access Financial Solutions 5,288 1,816 877 1,175 1,420 General corporate expenses (33,347) (13,099) (8,059) (5,889) (6,300) Add: AFS' interest expense 5,051 1,873 1,070 1,007 1,101 --------- --------- --------- --------- --------- TOTAL OPERATING INCOME $ 30,717 $ 13,403 $ 5,252 $ 5,110 $ 6,952 ========= ========= ========= ========= ========= PROFITABILITY Gross profit margin 17.2% 17.4% 16.4% 15.7% 19.2% Trailing twelve month EBITDA margin (1) 7.3% 7.3% 7.2% 9.7% 9.7% Operating margin 4.0% 5.4% 2.5% 3.3% 4.5% Net income margin(1) 1.7% 3.4% 0.4% 0.9% 1.5% REPORTED EPS PER DILUTED SHARE (1) $ .30 $ .19 $ .02 $ .03 $ .06 IMPACT OF SELECTED ITEMS ON: (2) income(expense) PRE-TAX INCOME Restructuring and repositioning charges (6,715) (120) (6,595) -- -- Currency effects (in Miscellaneous-net) 2,896 3,389 (948) 723 (268) Bad debt charges (in SA&PD) (3,693) (3,828) 236 (280) 179 Inventory charges (in COGS) (4,670) (3,163) 318 (801) (1,024) Incentive pay (in both COGS, SA&PD) -- -- -- -- -- Deferred profit on sale-leaseback (in COGS) 3,069 -- 159 1,391 1,519 NET INCOME Restructuring and repositioning charges (4,499) (80) (4,419) -- -- Currency effects (in Miscellaneous-net) 1,940 2,271 (635) 484 (180) Bad debt charges (in SA&PD) (2,474) (2,565) 158 (188) 120 Inventory charges (in COGS) (3,129) (2,119) 213 (537) (686) Benefit from change in effective income tax rate -- -- -- -- -- Incentive pay (in both COGS, SA&PD) -- -- -- -- -- Deferred profit on sale-leaseback (in COGS) 2,056 -- 107 932 1,018 EPS Restructuring and repositioning charges (0.10) -- (0.10) -- -- Currency effects (in Miscellaneous-net) 0.05 0.05 (0.01) 0.01 -- Bad debt charges (in SA&PD) (0.06) (0.06) -- -- -- Inventory charges (in COGS) (0.07) (0.05) -- (0.01) (0.02) Benefit from change in effective income tax rate -- -- -- -- -- Incentive pay (in both COGS, SA&PD) -- -- -- -- -- Deferred profit on sale-leaseback (in COGS) 0.05 -- -- 0.02 0.02 BALANCE SHEET & LIQUIDITY MEASURES Cash & cash equivalents $ 6,205 $ 6,205 $ 3,291 $ 3,572 $ 9,209 Accounts receivable, net 227,722 227,722 208,308 142,300 151,578 Finance receivable, net 73,660 73,660 103,141 138,647 128,113 Pledged finance receivables, net 88,056 88,056 42,114 -- -- Inventories 165,536 165,536 163,379 150,038 183,262 Total balance sheet debt 279,329 279,329 248,721 249,304 255,234 Limited recourse debt from finance receivables monetizations 87,571 87,571 42,114 -- -- Net debt (3) 198,884 198,884 220,666 281,551 311,913 Net debt (3) to total capitalization 46% 46% 50% 56% 58% Maximum loss exposure from finance receivables monetizations 5,998 5,998 3,421 NA NA Equity 236,042 236,042 224,685 222,777 221,293 Working capital 231,203 231,203 226,502 201,658 235,973 Trailing twelve month EBITDA (1) 56,435 56,435 57,891 78,826 86,191 Depreciation and amortization 20,959 5,146 4,694 6,023 5,096 Capital expenditures, net of retirements 12,390 2,666 3,227 3,297 3,200 Free cash flow (4) 169,753 21,783 60,885 30,362 56,723 - ------------------ FINANCIAL RATIOS Days sales outstanding 111.4 111.4 96.8 74.5 85.3 Days payables outstanding 66.5 66.5 73.8 55.9 54.5 Inventory turnover (annualized) 3.3 3.3 3.2 2.9 3.0
(1) Before cumulative effect of change in accounting principle. (2) Net of 32% and 33% effective income tax rate for fiscal 2003 and 2002, respectively. EPS is calculated by dividing the Net Income amounts by the respective diluted shares for each period. Individual quarterly net income (loss) per diluted share may not equal the fiscal year EPS due to changes in the number of common shares outstanding during the year. Repositioning charges are reported in COGS. (3) Net debt reflects total balance sheet debt plus off-balance sheet financing, less cash and limited recourse debt from finance receivables monetizations. (4) Free cash flow is defined as cash flow from operating, investing activities, payment of dividends, exercise of stock option and issuance of restricted awards, and the effect of exchange rate changes on cash less changes in accounts receivable securitization, limited recourse debt from finance receivable monetizations and off-balance sheet debt. [JLG INDUSTRIES, INC. LOGO] JLG INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in millions, except per share data) (Quarterly data is unaudited)
FISCAL 2003 Q4 Q3 Q2 Q1 ----------- ------- ------- ------- ------- Revenues Net sales $ 733.5 $ 235.8 $ 199.3 $ 144.0 $ 154.4 Rentals 7.1 1.6 1.3 2.5 1.7 Financial products 19.2 4.8 5.2 4.8 4.4 ------ ------ ------ ------ ------ 759.8 242.2 205.8 151.3 160.5 Cost of sales 622.5 194.8 171.1 125.2 131.4 ------ ------ ------ ------ ------ Gross profit 137.3 47.4 34.7 26.1 29.1 Gross profit margin 18.1% 19.6% 16.8% 17.2% 18.1% Selling and administrative expenses 79.2 25.3 20.1 16.3 17.5 Selling & admin % 10.4% 10.4% 9.8% 10.8% 10.9% Product development expenses 16.1 3.7 4.6 3.9 3.9 Product development % 2.1% 1.6% 2.2% 2.6% 2.4% Goodwill amortization -- -- -- -- -- Restructuring charges 2.8 0.2 1.4 1.2 -- ------ ------ ------ ------ ------ Income from operations 39.2 18.2 8.6 4.7 7.7 Operating profit margin 5.2% 7.5% 4.2% 3.1% 4.8% Other income (deductions): Interest expense (28.0) (9.6) (6.8) (6.1) (5.5) Miscellaneous, net 6.7 (0.6) 1.4 7.6 (1.7) ------ ------ ------ ------ ------ Income before taxes and cumulative effect of change in accounting principle 17.9 8.0 3.2 6.2 0.5 Income tax provision 3.7 0.5 1.0 2.0 0.2 ------ ------ ------ ------ ------ Income before cumulative effect of change in accounting principle 14.2 7.5 2.2 4.2 0.3 Cumulative effect of change in accounting principle -- -- -- -- -- ------ ------ ------ ------ ------ Net income (loss) $ 14.2 $ 7.5 $ 2.2 $ 4.2 $ 0.3 ======= ======= ======= ======= ======= Return on revenues (before impairment) 1.9% 3.1% 1.1% 2.8% 0.2% Earnings (loss) per common share: Earnings per common share before cumulative effect of change in accounting principle(1) $ .33 $ .17 $ .05 $ .10 $ .01 Cumulative effect of change in accounting principle (1) -- -- -- -- -- ------ ------ ------ ------ ------ Earnings (loss) per common share $ .33 $ .17 $ .05 $ .10 $ .01 ======= ======= ======= ======= ======= Earnings (loss) per common share - assuming dilution: Earnings per common share - assuming dilution before cumulative effect of change in accounting principle (1) $ .33 $ .17 $ .05 $ .10 $ .01 Cumulative effect of change in accounting principle (1) -- -- -- -- -- ------ ------ ------ ------ ------ Earnings (loss) per common share - assuming dilution $ .33 $ .17 $ .05 $ .10 $ .01 ======= ======= ======= ======= ======= Cash Dividends per share $ .020 $ .005 $ .005 $ .005 $ .005 ======= ======= ======= ======= ======= Average basic shares outstanding 42,601 42,608 42,598 42,570 42,541 Average diluted shares outstanding 42,866 42,883 42,775 42,867 42,853 ------- FISCAL 2002 Q4 Q3 Q2 Q1 FISCAL 2001 ----------- ------- ------- ------- ------- ----------- Revenues Net sales $ 745.9 $ 241.9 $ 203.4 $ 150.4 $ 150.2 $952.3 Rentals 10.0 2.1 2.3 2.8 2.8 7.7 Financial products 14.2 4.8 3.0 3.2 3.2 3.9 ------- ------- ------- ------- --------- ------- 770.1 248.8 208.7 156.4 156.2 963.9 Cost of sales 638.0 205.6 174.5 131.8 126.1 775.1 ------- ------- ------- ------- --------- ------- Gross profit 132.1 43.2 34.2 24.6 30.1 188.8 Gross profit margin 17.2% 17.4% 16.4% 15.7% 19.2% 19.6% Selling and administrative expenses 79.7 25.6 19.2 15.8 19.1 89.1 Selling & admin % 10.3% 10.3% 9.2% 10.1% 12.2% 9.2% Product development expenses 15.6 4.2 3.7 3.7 4.0 15.4 Product development % 2.0% 1.7% 1.8% 2.4% 2.6% 1.6% Goodwill amortization -- -- -- -- -- 6.1 Restructuring charges 6.1 -- 6.1 -- -- 4.4 ------- ------- ------- ------- --------- ------- Income from operations 30.7 13.4 5.2 5.1 7.0 73.8 Operating profit margin 4.0% 5.4% 2.5% 3.3% 4.5% 7.7% Other income (deductions): Interest expense (16.3) (4.6) (3.3) (4.0) (4.4) (22.2) Miscellaneous, net 4.8 3.7 (0.7) 0.9 0.9 2.7 ------- ------- ------- ------- --------- ------- Income before taxes and cumulative effect of change in accounting principle 19.2 12.5 1.2 2.0 3.5 54.3 Income tax provision 6.3 4.1 0.4 0.7 1.1 20.1 ------- ------- ------- ------- --------- ------- Income before cumulative effect of change in accounting principle 12.9 8.4 0.8 1.3 2.4 34.2 Cumulative effect of change in accounting principle (114.5) -- -- -- (114.5) -- ------- ------- ------- ------- --------- ------- Net income (loss) $(101.6) $ 8.4 $ 0.8 $ 1.3 $(112.1) $ 34.2 ======= ======= ======= ======= ========= ======= Return on revenues (before impairment) 1.7% 3.4% 0.4% 0.8% 1.5% 3.6% Earnings (loss) per common share: Earnings per common share before cumulative effect of change in accounting principle (1) $ .31 $ .20 $ .02 $ .03 $ .06 $ 0.81 Cumulative effect of change in accounting principle (1) (2.72) -- -- -- (2.74) -- ------- ------- ------- ------- --------- ------- Earnings (loss) per common share $ (2.41) $ .20 $ .02 $ .03 $ (2.68) $ 0.81 ======= ======= ======= ======= ========= ======= Earnings (loss) per common share - assuming dilution: Earnings per common share - assuming dilution before cumulative effect of change in accounting principle (1) $ .30 $ .19 $ .02 $ .03 $ .06 $ 0.80 Cumulative effect of change in accounting principle (1) (2.65) -- -- -- (2.70) -- ------- ------- ------- ------- --------- ------- Earnings (loss) per common share - assuming dilution $ (2.35) $ .19 $ .02 $ .03 $ (2.64) $ 0.80 ======= ======= ======= ======= ========= ======= Cash Dividends per share $ .025 $ .005 $ .005 $ .005 $ .010 $ .04 ======= ======= ======= ======= ========= ======= Average basic shares outstanding 42,082 42,492 42,107 41,813 41,814 42,155 Average diluted shares outstanding 43,170 43,950 43,816 42,399 42,413 42,686
(1) Goodwill impairment [JLG INDUSTRIES, INC. LOGO] JLG INDUSTRIES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands, except per share data)
July 31, April 30, January 31, October 31, July 31, --------- --------- --------- --------- --------- 2003 2003 2003 2002 2002 (unaudited) (unaudited) (unaudited) ASSETS - ------ Current assets Cash and cash equivalents $ 132,809 $ 16,529 $ 9,565 $ 10,181 $ 6,205 Accounts receivable, net 266,180 252,200 210,192 200,329 227,722 Finance receivables, net 3,168 1,570 18,031 18,276 28,248 Pledged finance receivables, net 41,334 50,741 39,685 35,391 34,353 Inventories 116,886 154,168 168,612 178,016 165,536 Other current assets 45,385 23,061 24,404 31,675 31,042 --------- --------- --------- --------- --------- Total current assets 605,762 498,269 470,489 473,868 493,106 Property, plant and equipment 79,699 80,366 81,165 82,057 84,370 Equipment held for rental 19,651 20,509 20,288 21,552 20,979 Finance receivables, less current portion 31,156 27,366 61,427 81,490 45,412 Pledged finance receivables, less current portion 119,073 116,348 73,971 51,309 53,703 Goodwill 29,509 29,509 29,509 28,791 28,791 Other assets 53,135 53,396 59,231 55,870 51,880 --------- --------- --------- --------- --------- $ 937,985 $ 825,763 $ 796,080 $ 794,937 $ 778,241 ========= ========= ========= ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY - ------------------------------------ Current liabilities Short-term debt $ 1,472 $ 912 $ 23,436 $ 25,375 $ 14,427 Current portion of limited recourse debt from finance receivables monetizations 45,279 50,980 36,511 33,862 34,850 Accounts payable 83,408 83,059 70,162 96,283 129,317 Accrued expenses 91,057 70,820 62,949 74,755 83,309 --------- --------- --------- --------- --------- Total current liabilities 221,216 205,771 193,058 230,275 261,903 Long-term debt, less current portion 294,158 212,006 242,207 228,563 177,331 Limited recourse debt from finance receivables monetizations, less current portion 119,661 113,673 70,151 49,326 52,721 Accrued post-retirement benefits 26,179 26,255 25,833 25,411 24,989 Other long-term liabilities 15,160 11,118 11,317 11,150 10,807 Provisions for contingencies 12,114 11,906 11,754 14,315 14,448 Shareholders' equity Capital stock: Authorized shares: 100,000 at $.20 par value Issued shares: fiscal 2003 - 43,367; fiscal 2002 - 42,728 8,673 8,601 8,594 8,594 8,546 Additional paid-in capital 23,597 20,514 20,508 20,594 18,846 Retained earnings 230,273 223,033 221,083 217,072 216,957 Unearned compensation (5,428) (2,749) (2,938) (3,157) (1,649) Accumulated other comprehensive loss (7,618) (4,365) (5,487) (7,206) (6,658) --------- --------- --------- --------- --------- Total shareholders' equity 249,497 245,034 241,760 235,897 236,042 --------- --------- --------- --------- --------- $ 937,985 $ 825,763 $ 796,080 $ 794,937 $ 778,241 ========= ========= ========= ========= =========
[JLG INDUSTRIES, INC. LOGO] JLG Industries, Inc. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW (in thousands) (Quarterly data in unaudited)
FULL YEAR FULL YEAR FISCAL 2003 Q4 Q3 Q2 Q1 FISCAL 2002 ---------------------------------------------------------- ----------- OPERATIONS Net income (loss) $ 14,175 $ 7,455 $ 2,165 $ 4,226 $ 329 $(101,592) Adjustments to reconcile net income to cash flow from operating activities: Loss on sale of property, plant and equipment 266 149 25 89 3 392 Gain on sale of equipment held for rental (6,794) (1,091) (1,852) (3,154) (697) (8,049) Non-cash charges and credits: Cumulative effect of change in accounitng principle -- -- -- -- -- 114,470 Depreciation and amortization 19,937 4,591 4,931 5,147 5,268 20,959 Other 8,124 (4,475) 4,317 5,683 2,599 6,997 Changes in selected working capital items: Accounts receivable (1) (43,985) (17,651) (41,663) (11,945) 27,274 (40,110) Inventories 48,926 37,953 14,544 8,695 (12,266) 24,462 Accounts payable (46,026) 621 12,832 (26,469) (33,010) 52,685 Other operating assets and liabilities (12,706) (2,052) 7,434 (8,396) (9,692) 15,194 Changes in finance receivables 40,487 (2,644) 50,239 20,244 (27,352) 57,154 Changes in pledged finance receivables (114,271) (14,627) (64,299) (32,950) (2,395) (91,331) Changes in other assets and liabilities (3,295) (3,392) 3,970 (281) (3,592) (28,136) --------- --------- --------- --------- --------- --------- Cash flow from operating activities $ (95,162) 4,837 (7,357) (39,111) (53,531) 23,095 INVESTMENTS Purchases of property, plant and equipment (10,806) (2,811) (3,059) (3,286) (1,650) (12,954) Proceeds from sale of property, plant and equipment 216 -- 92 121 3 172 Purchases of equipment held for rental (16,342) (1,991) (3,014) (7,713) (3,624) (26,429) Proceeds from sale of equipment held for rental 19,063 2,882 3,577 10,099 2,505 28,924 Other (689) (25) 529 (1,136) (57) 405 --------- --------- --------- --------- --------- --------- Cash flow from investing activities (8,558) (1,945) (1,875) (1,915) (2,823) (9,882) FINANCING Net (repayment) issuance of short-term debt (13,497) 568 (23,114) (1,975) 11,024 (7,771) Issuance of long-term debt 404,283 126,995 57,288 127,000 93,000 617,000 Repayment of long-term debt (279,647) (32,336) (88,050) (116,059) (43,202) (717,572) Issuance of limited recourse debt 117,383 18,940 68,975 29,468 -- 90,214 Repayment of limited recourse debt (118) -- (118) -- -- -- Payment of dividends (859) (215) (215) (215) (214) (1,058) Exercise of stock options and issuance of restricted awards 927 189 260 203 275 3,732 --------- --------- --------- --------- --------- --------- Cash flow from financing activities 228,472 114,141 15,026 38,422 60,883 (15,455) CURRENCY ADJUSTMENTS Effect of exchange rate changes on cash 1,852 (753) 1,170 1,988 (553) (807) --------- --------- --------- --------- --------- --------- CASH Net change in cash and cash equivalents 126,604 116,280 6,964 (616) 3,976 (3,049) Beginning balance 6,205 16,529 9,565 10,181 6,205 9,254 --------- --------- --------- --------- --------- --------- Ending balance 132,809 $ 132,809 $ 16,529 $ 9,565 $ 10,181 $ 6,205 ========= ========= ========= ========= ========= =========
(1) Net of change in accounts receivable securitization of $0 for the period ending July 31, 2003 and $50,600 for the period ending July 31, 2002. [JLG INDUSTRIES, INC. LOGO] JLG INDUSTRIES, INC. Reconciliation of Income Before Cumulative Effect of Change In Accounting Principle to EBITDA For the Trailing Twelve Month Periods (in thousands)
FY2003 Full Year ---------------------------------------------- 2003 Q4 Q3 Q2 Q1 -------------------------------------------------------- Income before cumulative effect of change in accounting principle $ 14,175 $ 14,175 $ 15,062 $ 13,733 $ 10,841 Interest expense 27,985 27,985 22,885 19,466 17,421 Income tax provision 3,724 3,724 7,270 6,664 5,333 Depreciation and amortization 19,937 19,937 20,492 20,255 21,131 -------- -------- -------- -------- -------- EBITDA $ 65,821 $ 65,821 $ 65,709 $ 60,118 $ 54,726 ======== ======== ======== ======== ======== Revenues $759,789 $759,789 $766,394 $769,356 $774,395 EBITDA Margin 8.7% 8.7% 8.6% 7.8% 7.1% FY2002 Full Year ---------------------------------------------- 2002 Q4 Q3 Q2 Q1 -------------------------------------------------------- Income before cumulative effect of change in accounting principle $ 12,878 $ 12,878 $ 10,176 $ 20,001 $ 23,564 Interest expense 16,255 16,255 17,462 20,452 22,477 Income tax provision 6,343 6,343 5,550 11,414 13,617 Depreciation and amortization 20,959 20,959 24,703 26,959 26,533 -------- -------- -------- -------- -------- EBITDA $ 56,435 $ 56,435 $ 57,891 $ 78,826 $ 86,191 ======== ======== ======== ======== ======== Revenues $770,070 $770,070 $802,842 $813,583 $887,324 EBITDA Margin 7.3% 7.3% 7.2% 9.7% 9.7%
We also monitor our EBITDA, which is a non-GAAP measure that provides additional information concerning our leverage position and our historical ability to meet debt service and capital expenditure and working capital requirements. EBITDA also is an indicator of profitability, particularly in our capital-intensive industry. EBITDA reflects our earnings before interest, taxes and depreciation and amortization. EBITDA as presented differs (i) from previously disclosed presentations which excluded restructuring or repositioning charges, and (ii) from measures of EBITDA calculated for purposes of financial covenants in our note indentures and senior credit facilities. [JLG INDUSTRIES, INC. LOGO] JLG INDUSTRIES, INC. Reconciliation of Balance Sheet Debt to Net Debt (in thousands)
JULY 31, APRIL 30, JANUARY 31, OCTOBER 31, 2003 2003 2003 2002 --------- --------- ----------- ----------- Revolving credit facilities $ -- $ 30,288 $ 61,000 $ 50,000 $25 million overdraft credit facility -- -- 23,058 25,000 $125 million senior notes 125,000 -- -- -- $175 million senior subordinated notes 175,000 175,000 175,000 175,000 Miscellaneous bank debt 1,983 1,468 1,573 1,665 Fair value of interest rate swap (12,347) -- 5,012 2,273 Gain on terminated interest rate swap 5,994 6,162 -- -- --------- --------- --------- --------- Bank debt and notes 295,630 212,918 265,643 253,938 Limited recourse debt from finance receivables monetizations (*) 164,940 164,653 106,662 83,188 --------- --------- --------- --------- Total balance sheet debt 460,570 377,571 372,305 337,126 --------- --------- --------- --------- Net present value of off-balance sheet rental fleet lease 2,341 3,382 3,858 4,506 Net present value of off-balance sheet production equipment leases 5,941 6,590 6,977 7,364 Accounts receivable securitization -- -- -- -- --------- --------- --------- --------- Total off-balance sheet financing 8,282 9,972 10,835 11,870 --------- --------- --------- --------- Total balance sheet debt and off-balance sheet financing 468,852 387,543 383,140 348,996 Less: cash 132,809 16,529 9,565 10,181 Less: limited recourse debt from finance receivables monetizations 164,940 164,653 106,662 83,188 --------- --------- --------- --------- Net debt $ 171,103 $ 206,361 $ 266,913 $ 255,627 ========= ========= ========= ========= (*) Maximum loss exposure from finance receivables monetizations $ 21,708 $ 18,928 $ 8,519 $ 6,275 ========= ========= ========= ========= Shareholders' Equity $ 249,497 $ 245,034 $ 241,760 $ 235,897 ========= ========= ========= ========= Net Debt-to-Net Debt plus Shareholders' Equity 41% 46% 52% 52% == == == == Total Balance Sheet Debt-to-Total Balance Sheet Debt plus Shareholders' Equity 65% 61% 61% 59% == == == == JULY 31, APRIL 30, JANUARY 31, OCTOBER 31, 2002 2002 2002 2001 --------- --------- ----------- ----------- Revolving credit facilities $ -- $ 190,000 $ 222,500 $ 251,500 $25 million overdraft credit facility 13,935 14,539 22,409 865 $125 million senior notes -- -- -- -- $175 million senior subordinated notes 175,000 -- -- -- Miscellaneous bank debt 1,909 2,068 4,395 2,869 Fair value of interest rate swap 914 -- -- -- Gain on terminated interest rate swap -- -- -- -- --------- --------- --------- --------- Bank debt and notes 191,758 206,607 249,304 255,234 Limited recourse debt from finance receivables monetizations (*) 87,571 42,114 -- -- --------- --------- --------- --------- Total balance sheet debt 279,329 248,721 249,304 255,234 --------- --------- --------- --------- Net present value of off-balance sheet rental fleet lease 5,582 9,066 9,201 11,150 Net present value of off-balance sheet production equipment leases 7,749 8,284 8,518 8,938 Accounts receivable securitization -- -- 18,100 45,800 --------- --------- --------- --------- Total off-balance sheet financing 13,331 17,350 35,819 65,888 --------- --------- --------- --------- Total balance sheet debt and off-balance sheet financing 292,660 266,071 285,123 321,122 Less: cash 6,205 3,291 3,572 9,209 Less: limited recourse debt from finance receivables monetizations 87,571 42,114 -- -- --------- --------- --------- --------- Net debt $ 198,884 $ 220,666 $ 281,551 $ 311,913 ========= ========= ========= ========= (*) Maximum loss exposure from finance receivables monetizations $ 5,998 $ 3,421 NA NA ========= ========= ========= ========= Shareholders' Equity $ 236,042 $ 339,155 $ 337,247 $ 335,763 ========= ========= ========= ========= Net Debt-to-Net Debt plus Shareholders' Equity 46% 39% 45% 48% ========= ========= ========= ========= Total Balance Sheet Debt-to-Total Balance Sheet Debt plus Shareholders' Equity 54% 42% 43% 43% ========= ========= ========= =========
We also monitor our net debt, which is a non-GAAP measure that provides additional information concerning our leverage position and our historical ability to meet debt service. We define net debt as the sum of total balance sheet debt and other off-balance sheet financing, minus cash and limited recourse debt arising from our monetization of customer finance receivables. [JLG INDUSTRIES, INC. LOGO] JLG INDUSTRIES, INC. Reconciliation of Cash Flow from Operating Activities to Free Cash Flow (in thousands)
FY2003 Full Year --------------------------------------------------- FY 2003 Q4 Q3 Q2 Q1 ------------------------------------------------------------------ Net income (loss) $ 14,175 $ 7,455 $ 2,165 $ 4,226 $ 329 Adjustments to reconcile net income to cash flow from operating activities 21,533 (826) 7,421 7,765 7,173 Accounts receivable (43,985) (17,651) (41,663) (11,945) 27,274 Inventories 48,926 37,953 14,544 8,695 (12,266) Other current assets (15,960) (18,109) 191 2,721 (763) Accounts payable (46,026) 621 12,832 (26,469) (33,010) Accrued expenses 3,254 16,057 7,243 (11,117) (8,929) Finance receivables 40,487 (2,644) 50,239 20,244 (27,352) Other cash from operations (3,295) (3,392) 3,970 (281) (3,592) Purchases of property, plant and equipment (10,806) (2,811) (3,059) (3,286) (1,650) Proceeds from sale of property, plant and equipment 216 -- 92 121 3 Purchases of equipment held for rental (16,342) (1,991) (3,014) (7,713) (3,624) Proceeds from sale of equipment held for rental 19,063 2,882 3,577 10,099 2,505 Other cash from investments (689) (25) 529 (1,136) (57) Payment of dividends (859) (215) (215) (215) (214) Exercise of stock option and issuance of 927 189 260 203 275 Effect of exchange rate changes on cash 1,852 (753) 1,170 1,988 (553) Other(1) 15,310 18,518 4,271 (5,186) (2,293) --------- --------- --------- --------- --------- Free Cash Flow $ 27,781 $ 35,258 $ 60,553 ($ 11,286) ($ 56,744) ========= ========= ========= ========= ========= FY2002 Full Year --------------------------------------------------- 2002 Q4 Q3 Q2 Q1 ------------------------------------------------------------------ Net income (loss) ($101,592) $ 8,342 $ 836 $ 1,334 ($112,104) Adjustments to reconcile net income to cash flow from operating activities 134,769 4,836 957 8,966 120,010 Accounts receivable (40,110) (23,116) (65,224) 9,596 38,634 Inventories 24,462 (1,993) (13,465) 33,308 6,612 Other current assets 3,110 1,262 2,815 3,623 (4,590) Accounts payable 52,685 6,926 68,708 (29,781) 6,832 Accrued expenses 12,084 21,621 6,358 (12,902) (2,993) Finance receivables 57,154 29,938 34,878 (11,130) 3,468 Other cash from operations (28,136) (28,139) (1,389) 2,502 (1,110) Purchases of property, plant and equipment (12,954) (2,708) (3,675) (3,278) (3,293) Proceeds from sale of property, plant and equipment 172 22 13 26 111 Purchases of equipment held for rental (26,429) (5,652) (4,896) (5,479) (10,402) Proceeds from sale of equipment held for rental 28,924 7,710 15,374 3,327 2,513 Other cash from investments 405 405 -- -- -- Payment of dividends (1,058) (215) (212) (210) (421) Exercise of stock option and issuance of 3,732 456 2,706 321 249 Effect of exchange rate changes on cash (807) 100 (1,368) 70 391 Other(1) 63,342 1,988 18,469 30,069 12,816 --------- --------- --------- --------- --------- Free Cash Flow $ 169,753 $ 21,783 $ 60,885 $ 30,362 $ 56,723 ========= ========= ========= ========= =========
(1) Includes changes in accounts receivable securitization and other off-balance sheet debt. In addition to measuring our cash flow generation and usage based upon the Statements of Cash Flows, we also measure our free cash flow. We define free cash flow as cash flow from operating, investing activities, payment of dividends, exercise of stock option and issuance of restricted awards, and the effect of exchange rate changes on cash less changes in accounts receivable securitization, limited recourse debt from finance receivable monetizations and off-balance sheet debt. Our measure of free cash flow may not be comparable to similarly titled measures being disclosed by other companies and is not a measure of financial performance that is in accordance with GAAP. We utilize free cash flow to explain the change in our net debt position from the prior period. -----END PRIVACY-ENHANCED MESSAGE-----