EX-99.1 2 j2048601exv99w1.htm EX-99.1 PRESS RELEASE EX-99.1 Press Release
 

Exhibit 99.1
     
(JLG LOGO)
    
 
  Press Release
 
  FOR IMMEDIATE RELEASE
 
  Contact: Greg Fries
JLG Industries, Inc.
  Manager — Investor Relations & Analysis
1 JLG Drive
  (240) 313-1817, ir@jlg.com
McConnellsburg, PA 17233-9533
    
Telephone (717) 485-5161
    
Fax (717) 485-6417
    
www.jlg.com
    
ROBUST DEMAND DRIVES JLG TO RECORD QUARTERLY REVENUES
Revenues up 25 percent – Earnings per share up 79 percent — Improved Outlook
      McConnellsburg, PA, May 24, 2006 – JLG Industries, Inc. (NYSE: JLG) today announced consolidated revenues of $630 million and earnings per diluted share of $.43 for its fiscal third quarter ended April 30, 2006. Compared to the prior year period, revenue in the third fiscal quarter increased 25 percent, led by a 38 percent increase internationally and a 20 percent increase in the United States. Excluding revenues from the recently divested excavator business, third quarter revenues increased 30 percent from the prior year. The Company reported net income of $46.2 million compared with net income of $22.7 million, or $0.24 per diluted share, in the prior year. These results include a one time pre-tax gain of $14.6 million ($8.8 million net of tax), or $.08 per diluted share, from the sale of the excavator business during the quarter. The prior year results include $6.3 million ($3.8 million net of tax) or $.04 per share of charges associated with the early extinguishment of debt.
     “Quarterly revenues reached a new record and we produced solid earnings improvement during a period of major manufacturing realignment and capacity expansion,” stated Bill Lasky, Chairman of the Board, President and Chief Executive Officer. “Despite the record level of shipments, incoming orders remained very strong and the open order board at the end of the quarter was $927 million, a significant increase from last year’s level of $665 million. This continues to reflect strong market demand for JLG access products. Our supply chain is responding positively to the increased orders and we are on track to complete our manufacturing realignment and capacity expansion in the fourth quarter. We plan to begin shipments of Caterpillar-branded telehandlers to European dealers in August and to North American dealers in November under our exclusive 20-year private label alliance agreement. In addition to supporting the alliance agreement, the manufacturing realignment and capacity expansion also provides the additional capacity and flexibility required to better satisfy overall demand for JLG access equipment, as well as ongoing productivity improvement.”
Year to date Results
     For the first nine months of fiscal 2006, consolidated revenues were $1.6 billion, a 37 percent increase from the prior year period. Net income was $101 million, or $.95 per diluted share, compared to $21.5 million, or $.23 per diluted share last year.
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JLG Industries, Inc. — page 2
     Cash and cash equivalents totaled $305 million at April 30, 2006, a sequential increase of $122 million, of which $32.4 million was due to the sale of the excavator product line. During the quarter, the Company repurchased $12.4 million of its 8.25 percent Senior Notes due in 2008.
Outlook
     “Demand strength for access products continued through the third quarter and the sustained high level of our order board suggests this trend will continue,” said Jim Woodward, Executive Vice President and Chief Financial Officer. “Operating income improved to $84.7 million including the gain on the sale of the excavator business, or 13.5 percent of revenues, compared to $51.3 million, or 10.1 percent, for the comparable year-ago period. Adjusted for the $14.6 million gain on the sale of the excavator business and the $8.0 million of costs for strategic initiatives and manufacturing realignment in the current period, and for $1.1 million of integration expense in the prior period, our incremental operating margin was 21 percent.
     With nine months of our fiscal year behind us, we now expect our fiscal 2006 revenue growth to be approximately 30 percent over fiscal 2005, an increase from our previously announced range of 20 to 25 percent. Excluding the one-time pre-tax gain on the sale of the excavator business of approximately $14.6 million, we now expect earnings per diluted share to be in a range from $1.25 to $1.30, up from our previous guidance of $1.18 to $1.23. Including the sale of the excavator business, we expect earnings per diluted share in the $1.33 — $1.38 range for this fiscal year.”
Conference Call
     Management’s detailed analysis of the Company’s quarterly results will be provided during a conference call on Thursday, May 25, 2006 at 2:00 p.m. Eastern Time. Within North America, access to the call is available by dialing 866-277-1181, participant pass code 48911770. From international locations, call 617-597-5358, using the same pass code. Please dial into the conference 10 minutes prior to the start. A replay of the call will be available on the website later the same day.
About JLG
     JLG Industries, Inc. is the world’s leading producer of access equipment (aerial work platforms and telehandlers). The Company’s diverse product portfolio encompasses leading brands such as JLGâ aerial work platforms; JLG, SkyTrakâ, Lullâ and Gradallâ telehandlers; and an array of complementary accessories that increase the versatility and efficiency of these products for end users. JLG markets its products and services through a multi-channel approach that includes a highly trained sales force and utilizes a broad range of marketing techniques, integrated supply programs and a network of distributors in the industrial, commercial, institutional and construction markets. In addition, JLG offers world-class after-sales service and support for its customers. JLG’s manufacturing facilities are located in the United States, Belgium, and France, with sales and service operations on six continents.
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JLG Industries, Inc. — page 3
     This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the following: (i) general economic and market conditions, including political and economic uncertainty in areas of the world where we do business; (ii) varying and seasonal levels of demand for our products and services; (iii) risks associated with acquisitions; (iv) credit risks from our financing of customer purchases; (v) risks arising from dependence on third-party suppliers; and (vi) costs of raw materials and energy, as well as other risks as detailed in the Company’s SEC reports, including the report on Form 10-Q for the quarter ended January 29, 2006.
     In this release and accompanying tables, we refer to various non-GAAP measures including adjustments to reported GAAP earnings, AFS operations as if accounted for under the equity method, as well as our disclosure of free cash flow, EBITDA and net debt. We believe that these measures are useful to investors in analyzing the Company’s operating performance. For more information, visit www.jlg.com.
     NOTE: Information contained on our website is not incorporated by reference into this press release.
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JLG Industries, Inc. — Page 4
JLG INDUSTRIES, INC.
FINANCIAL DASHBOARD
(in thousands, except per share data and as otherwise identified)
                                                                         
            Quarter Ended           Fiscal Year           Quarter Ended           Fiscal Year
    April 30,   January 29,   October 30,   Ended   July 31,   May 1,   January 30,   October 31,   Ended
    2006   2006   2005   July 31, 2005   2005   2005   2005   2004   July 31, 2004
REVENUES AND PROFITABILITY
                                                                        
Revenues
   $ 629,615     $ 494,426     $ 477,723     $ 1,735,030     $ 569,579     $ 505,356     $ 353,434     $ 306,661     $ 1,193,962  
Gross profit margin
     18.8 %     19.4 %     19.9 %     16.6 %     19.3 %     19.4 %     15.3 %     8.4 %     18.9 %
EBITDA
     90,952       59,400       59,344       154,185       71,103       53,786       27,111       2,185       105,660  
Trailing twelve month EBITDA
     280,799       243,633       211,344       154,185       154,185       121,445       97,995       90,653       105,660  
Trailing twelve month EBITDA margin
     12.9 %     11.9 %     11.1 %     8.9 %     8.9 %     7.6 %     7.0 %     7.0 %     8.8 %
Operating income (loss)
     84,690       49,734       50,366       120,261       59,722       51,267       17,607       (8,335 )     75,906  
Operating profit (loss) margin
     13.5 %     10.1 %     10.5 %     6.9 %     10.5 %     10.1 %     5.0 %     -2.7 %     6.4 %
Net income (loss) margin
     7.3 %     5.5 %     5.8 %     3.3 %     6.3 %     4.5 %     2.1 %     -2.8 %     2.2 %
 
                                                                        
Reported earnings
(loss) per diluted share (1)
   $ 0.43     $ 0.26     $ 0.27     $ .60     $ .35     $ .24     $ .08     $ (.10 )   $ .30  
 
                                                                        
IMPACT OF SELECTED ITEMS ON: (2)
                                                                        
income (expense)
                                                                        
PRE-TAX INCOME
                                                                        
Strategic Initiatives/Integration (in both Cost of sales (COS), Selling & administrative and product development (SA&PD))
   $ (7,951 )   $ (3,375 )   $ (845 )   $ (6,261 )   $ (2,131 )   $ (1,141 )   $ (1,093 )   $ (1,896 )   $ (15,975 )
Restructuring and repositioning charges (in both COS, Restructuring)
     —       —       —       —       —       —       —       —       (119 )
Net expenses on early extinguishment of debt
     (873 )     (574 )     —       (6,493 )     (217 )     (6,276 )     —       —       —  
Currency effects (in Miscellaneous-net)
     (2,847 )     (672 )     731       5,826       1,419       (961 )     3,087       2,281       (2,309 )
Bad debt charges (in SA&PD)
     (234 )     (1,336 )     (3,509 )     (6,977 )     (2,533 )     (1,364 )     (1,948 )     (1,132 )     (11,560 )
Inventory charges (in COS)
     106       (551 )     (1,488 )     (4,423 )     (1,244 )     (1,279 )     (308 )     (1,592 )     (4,519 )
Early vesting incentives (in both COS, SA&PD)
     —       —       —       (1,658 )     —       (227 )     (436 )     (995 )     (1,771 )
Other Incentive pay (in both COS, SA&PD)
     (6,266 )     (4,888 )     (4,846 )     (22,194 )     (14,810 )     (7,384 )     —       —       (16,923 )
Restatement expenses (in SA&PD)
     —       —       —       —       —       —       —       —       (1,264 )
Estimated net unrecovered steel cost (in COS)(3)
     —       —       (6,005 )     (64,753 )     (8,702 )     (8,307 )     (20,980 )     (26,764 )     (4,695 )
Gain on sale of Gradall excavator product line
     14,572       —       —       —       —       —       —       —       —  
 
                                                                        
NET INCOME
                                                                        
Strategic Initiatives/Integration (in both COS and SA&PD)
     (4,789 )     (2,146 )     (503 )     (3,846 )     (1,325 )     (687 )     (692 )     (1,191 )     (10,160 )
Restructuring and repositioning charges (in both COS, Restructuring)
     —       —       —       —       —       —       —       —       (76 )
Net expenses on early extinguishment of debt
     (526 )     (365 )     —       (3,988 )     (135 )     (3,778 )     —       —       —  
Currency effects (in Miscellaneous-net)
     (1,715 )     (427 )     435       3,578       882       (579 )     1,954       1,432       (1,469 )
Bad debt charges (in SA&PD)
     (141 )     (850 )     (2,088 )     (4,285 )     (1,575 )     (821 )     (1,233 )     (711 )     (7,352 )
Inventory charges (in COS)
     64       (350 )     (885 )     (2,717 )     (774 )     (770 )     (195 )     (1,000 )     (2,874 )
Early vesting incentives (in both COS, SA&PD)
     —       —       —       (1,018 )     —       (137 )     (276 )     (625 )     (1,126 )
Other Incentive pay (in both COS, SA&PD)
     (3,774 )     (3,109 )     (2,883 )     (13,632 )     (9,209 )     (4,445 )     —       —       (10,763 )
Restatement expenses (in SA&PD)
     —       —       —       —       —       —       —       —       (804 )
Estimated net unrecovered steel cost (in COS)(3)
     —       —       (3,573 )     (39,771 )     (5,411 )     (5,001 )     (13,280 )     (16,808 )     (2,986 )
Gain on sale of Gradall excavator product line
     8,777       —       —       —       —       —       —       —       —  
 
                                                                        
EARNINGS PER SHARE (1)
                                                                        
Strategic Initiatives/Integration (in both COS and SA&PD)
     (0.04 )     (0.02 )     —       (0.04 )     (0.01 )     (0.01 )     (0.01 )     (0.01 )     (0.11 )
Restructuring and repositioning charges (in both COS, Restructuring)
     —       —       —       —       —       —       —       —       —  
Net expenses on early extinguishment of debt
     —       —       —       (0.04 )     —       (0.04 )     —       —       —  
Currency effects (in Miscellaneous-net)
     (0.02 )     —       —       0.04       0.01       (0.01 )     0.02       0.02       (0.02 )
Bad debt charges (in SA&PD)
     —       (0.01 )     (0.02 )     (0.04 )     (0.02 )     (0.01 )     (0.01 )     (0.01 )     (0.08 )
Inventory charges (in COS)
     —       —       (0.01 )     (0.03 )     (0.01 )     (0.01 )     —       (0.01 )     (0.03 )
Early vesting incentives (in both COS, SA&PD)
     —       —       —       (0.01 )     —       —       —       (0.01 )     (0.01 )
Other Incentive pay (in both COS, SA&PD)
     (0.04 )     (0.03 )     (0.03 )     (0.14 )     (0.09 )     (0.05 )     —       —       (0.12 )
Restatement expenses (in SA&PD)
     —       —       —       —       —       —       —       —       (0.01 )
Estimated net unrecovered steel cost (in COS)(3)
     —       —       (0.03 )     (0.42 )     (0.05 )     (0.05 )     (0.15 )     (0.19 )     (0.03 )
Gain on sale of Gradall excavator product line
     0.08       —       —       —       —       —       —       —       —  
 
                                                                        
BALANCE SHEET & LIQUIDITY MEASURES
                                                                        
Cash & cash equivalents
   $ 304,895     $ 183,344     $ 230,947     $ 223,597     $ 223,597     $ 172,480     $ 24,305     $ 66,498     $ 37,656  
Trade accounts and finance receivables, net
     393,966       379,813       379,393       419,866       419,866       377,190       354,350       333,316       400,597  
Inventories
     216,901       227,957       218,881       169,097       169,097       185,370       182,606       170,731       154,405  
Total balance sheet debt
     252,047       273,721       278,877       289,351       289,351       299,075       383,534       389,609       423,534  
Limited recourse debt from finance receivables monetizations
     28,516       45,318       55,921       63,658       63,658       70,586       77,601       85,733       121,794  
Net debt(4)
     (81,364 )     45,059       (7,991 )     2,096       2,096       59,248       286,092       242,381       269,553  
Net debt(4) to total capitalization
     —       7 %     —       —       —       12 %     50 %     47 %     49 %
Maximum loss exposure under loss pool agreements related to finance receivable monetizations
     8,818       11,346       11,855       22,160       22,160       22,168       22,168       22,168       22,198  
Equity
     625,736       566,870       507,140       478,592       478,592       436,238       284,746       276,780       281,270  
Working capital
     575,593       523,417       505,787       489,187       489,187       451,660       340,786       328,671       340,552  
Depreciation and amortization
     7,701       7,907       6,533       28,899       7,365       7,488       6,958       7,088       25,681  
Capital expenditures, net of retirements
     9,622       3,653       3,129       13,435       8,282       490       2,010       2,653       11,978  
Free cash flow(5)
     126,423       (53,050 )     10,087       267,457       57,152       226,844       (43,711 )     27,172       (98,450 )
 
                                                                        
FINANCIAL RATIOS
                                                                        
Days sales outstanding
     46.8       62.3       62.7       57.1       57.1       55.4       83.7       92.0       78.4  
Days payables outstanding
     45.2       40.6       46.4       50.5       50.5       55.7       46.5       54.6       57.0  
Inventory turnover (annualized)
     7.5       7.6       7.8       7.6       7.6       6.9       6.4       5.9       5.8  
 
(1)   On March 27, 2006, we distributed a two-for-one stock split of our then outstanding common stock. All share and per share data included in this Financial Dashboard and the accompanying consolidated condensed financial statements have been restated to reflect the stock split.
 
(2)   Net of the quarter and annual effective tax rates. EPS is calculated by dividing the net income (loss) amounts by the respective diluted shares for each period. Individual quarterly net income (loss) per diluted share may not equal the fiscal year EPS due to changes in the number of common shares outstanding during the year. Repositioning charges are reported in COS.
 
(3)   Net unrecovered steel cost is an estimate based upon a baseline average of steel prices per ton for various types of steel in fiscal 2004 compared to the impact of steel prices incurred for various types of steel. These estimates include assumptions regarding the steel content of and sources of our products and their components. The steel price increases are netted against steel surcharges invoiced to our customers.
 
(4)   Net debt reflects total balance sheet debt plus off-balance sheet financing, less cash and limited recourse debt from finance receivables monetizations.
 
(5)   Free cash flow is defined as cash flow from operating activities, investing activities, payment of dividends, exercise of stock options, and the effect of exchange rate changes on cash less changes in accounts receivable securitization, limited recourse debt from finance receivables monetizations and off-balance sheet debt.

 

 

JLG Industries, Inc. — Page 5
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
(Quarterly data is unaudited)
                                                                         
            Quarter Ended             Fiscal Year             Quarter Ended             Fiscal Year  
    April 30,     January 29,     October 30,     Ended     July 31,     May 1,     January 30,     October 31,     Ended  
    2006     2006     2005     July 31, 2005     2005     2005     2005     2004     July 31, 2004  
Revenues
                                                                        
Net sales
   $ 624,686     $ 488,411     $ 472,436     $ 1,713,782     $ 563,805     $ 499,899     $ 347,947     $ 302,131     $ 1,170,186  
Financial products
     2,216       3,256       2,974       11,915       2,826       3,373       3,056       2,660       15,203  
Rentals
     2,713       2,759       2,313       9,333       2,948       2,084       2,431       1,870       8,573  
 
                                                      
 
     629,615       494,426       477,723       1,735,030       569,579       505,356       353,434       306,661       1,193,962  
Cost of sales
     511,552       398,566       382,859       1,447,785       459,893       407,464       299,462       280,966       968,562  
 
                                                      
Gross profit
     118,063       95,860       94,864       287,245       109,686       97,892       53,972       25,695       225,400  
Gross profit margin
     18.8 %     19.4 %     19.9 %     16.6 %     19.3 %     19.4 %     15.3 %     8.4 %     18.9 %
Selling and administrative expenses
     41,025       39,301       38,061       142,383       43,927       39,524       30,810       28,122       128,465  
Selling &
administrative %
     6.5 %     7.9 %     8.0 %     8.2 %     7.7 %     7.8 %     8.7 %     9.2 %     10.8 %
Product development expenses
     6,920       6,825       6,437       24,601       6,037       7,101       5,555       5,908       21,002  
Product
development %
     1.1 %     1.4 %     1.3 %     1.4 %     1.1 %     1.4 %     1.6 %     1.9 %     1.8 %
Gain on sale of Gradall excavator product line
     (14,572 )     —       —       —       —       —       —       —       —  
Restructuring charges
     —       —       —       —       —       —       —       —       27  
 
                                                      
Income (loss) from operations
     84,690       49,734       50,366       120,261       59,722       51,267       17,607       (8,335 )     75,906  
Operating profit (loss) margin
     13.5 %     10.1 %     10.5 %     6.9 %     10.5 %     10.1 %     5.0 %     -2.7 %     6.4 %
Other income (deductions):
                                                                        
Interest expense (net of interest income)
     (4,030 )     (6,688 )     (4,466 )     (28,609 )     (4,905 )     (7,418 )     (7,852 )     (8,434 )     (35,397 )
Miscellaneous, net
     (3,974 )     69       934       1,436       2,595       (6,105 )     2,076       2,870       1,372  
 
                                                      
Income (loss) before taxes
     76,686       43,115       46,834       93,088       57,412       37,744       11,831       (13,899 )     41,881  
Income tax provision (benefit)
     30,499       15,695       18,968       35,915       21,716       15,022       4,347       (5,170 )     15,232  
 
                                                      
Net income (loss)
   $ 46,187     $ 27,420     $ 27,866     $ 57,173     $ 35,696     $ 22,722     $ 7,484     $ (8,729 )   $ 26,649  
 
                                                      
 
                                                                        
Return on revenues
     7.3 %     5.5 %     5.8 %     3.3 %     6.3 %     4.5 %     2.1 %     -2.8 %     2.2 %
 
                                                                        
Earnings (loss) per common share
   $ .44     $ .26     $ .27     $ .61     $ .35     $ .24     $ .09     $ (.10 )   $ .31  
 
                                                      
 
                                                                        
Earnings (loss) per common share — assuming dilution
   $ .43     $ .26     $ .27     $ .60     $ .35     $ .24     $ .08     $ (.10 )   $ .30  
 
                                                      
 
                                                                        
Cash Dividends per share
   $ .0050     $ .0025     $ .0025     $ .0100     $ .0025     $ .0025     $ .0025     $ .0025     $ .0100  
 
                                                      
 
                                                                        
Average basic shares outstanding
     105,088       104,042       102,424       93,058       100,722       94,182       87,596       86,554       85,720  
 
                                                      
 
                                                                        
Average diluted shares outstanding
     107,232       106,374       105,112       95,586       103,312       96,574       89,976       86,554       88,064  
 
                                                      

 

 

JLG Industries, Inc. — Page 6
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands, except per share data)
(Quarterly data is unaudited)
                                                                 
    April 30,     January 29,     October 30,     July 31,     May 1,     January 30,     October 31,     July 31,  
    2006     2006     2005     2005     2005     2005     2004     2004  
ASSETS
                                                                
Current assets
                                                                
Cash and cash equivalents
   $ 304,895     $ 183,344     $ 230,947     $ 223,597     $ 172,480     $ 24,305     $ 66,498     $ 37,656  
Trade accounts and finance receivables, net
     393,966       379,813       379,393       419,866       377,190       354,350       333,316       400,597  
Inventories
     216,901       227,957       218,881       169,097       185,370       182,606       170,731       154,405  
Assets held for sale
     —       49,941       —       —       3,500       4,300       —       —  
Other current assets
     26,595       42,715       48,417       56,739       55,253       43,166       45,739       41,058  
 
                                                
Total current assets
     942,357       883,770       877,638       869,299       793,793       608,727       616,284       633,716  
Property, plant and equipment, net
     87,447       82,746       84,879       85,855       78,270       82,387       89,443       91,504  
Equipment held for rental, net
     21,934       36,684       38,401       22,570       27,220       23,163       26,842       21,190  
Finance receivables, less current portion
     29,472       26,500       29,688       30,354       31,836       36,992       39,002       33,747  
Pledged finance receivables, less current portion
     11,923       18,623       26,589       33,649       40,459       50,372       56,413       86,559  
Goodwill
     60,513       60,419       61,598       61,641       63,134       63,165       63,017       62,885  
Intangible assets, net
     74,557       75,371       31,795       32,086       33,465       33,848       34,590       35,240  
Other assets
     72,197       68,379       64,675       68,143       56,848       80,420       66,991       62,603  
 
                                                
 
   $ 1,300,400     $ 1,252,492     $ 1,215,263     $ 1,203,597     $ 1,125,025     $ 979,074     $ 992,582     $ 1,027,444  
 
                                                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                                                
Current liabilities
                                                                
Short-term debt and current portion of long-term debt
   $ 8,447     $ 6,515     $ 1,486     $ 1,496     $ 1,552     $ 3,744     $ 1,788     $ 1,729  
Current portion of limited recourse debt from finance receivables monetizations
     16,531       26,558       29,045       29,642       29,708       26,660       26,725       32,585  
Accounts payable
     221,342       187,591       200,281       200,323       194,588       139,742       150,600       139,990  
Accrued expenses
     120,444       139,689       141,039       148,651       116,285       97,795       108,500       118,860  
 
                                                
Total current liabilities
     366,764       360,353       371,851       380,112       342,133       267,941       287,613       293,164  
Long-term debt, less current portion
     215,084       221,888       221,470       224,197       226,937       302,189       302,088       300,011  
Limited recourse debt from finance receivables monetizations, less current portion
     11,985       18,760       26,876       34,016       40,878       50,941       59,008       89,209  
Accrued post-retirement benefits
     25,193       31,797       31,455       31,113       30,801       30,423       30,211       29,666  
Other long-term liabilities
     23,152       22,117       28,464       27,233       24,116       23,536       21,362       20,542  
Provisions for contingencies
     32,486       30,707       28,007       28,334       23,922       19,298       15,520       13,582  
Shareholders’ equity
                                                                
Capital stock:
                                                                
Authorized shares: 200,000 at $.20 par value
                                                               
Issued shares: 106,338; fiscal 2005 — 103,290; fiscal 2004 — 87,806
     21,268       21,100       20,666       20,658       20,390       17,880       17,814       17,562  
Additional paid-in capital
     206,710       193,021       165,119       170,367       153,779       28,147       26,204       20,790  
Retained earnings
     410,937       365,280       338,124       310,516       275,077       252,579       245,319       254,268  
Unearned compensation
     —       —       —       (7,397 )     (2,642 )     (3,433 )     (4,019 )     (5,333 )
Accumulated other comprehensive loss
     (13,179 )     (12,531 )     (16,769 )     (15,552 )     (10,366 )     (10,427 )     (8,538 )     (6,017 )
 
                                                
Total shareholders’ equity
     625,736       566,870       507,140       478,592       436,238       284,746       276,780       281,270  
 
                                                
 
   $ 1,300,400     $ 1,252,492     $ 1,215,263     $ 1,203,597     $ 1,125,025     $ 979,074     $ 992,582     $ 1,027,444  
 
                                                

 

 

     
JLG Industries, Inc. — Page 7
JLG INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(in thousands)
(Quarterly data is unaudited)
                                                                         
            Quarter Ended     Fiscal Year             Quarter Ended             Fiscal Year  
    April 30,     January 29,     October 30,     Ended     July 31,     May 1,     January 30,     October 31,     Ended  
    2006     2006     2005     July 31, 2005     2005     2005     2005     2004     July 31, 2004  
OPERATIONS
                                                                        
Net income (loss)
   $ 46,187     $ 27,420     $ 27,866     $ 57,173     $ 35,696     $ 22,722     $ 7,484     $ (8,729 )   $ 26,649  
Adjustments to reconcile net income (loss) to cash flow from operating activities:
                                                                        
Gain on sale of Gradall excavator product line
     (14,572 )     —       —       —       —       —       —       —       —  
Loss (gain) on sale of property, plant and equipment
     5       57       (86 )     948       828       (22 )     (19 )     161       319  
Gain on sale of equipment held for rental
     (7,555 )     (5,612 )     (72 )     (11,711 )     (3,791 )     (1,286 )     (5,334 )     (1,300 )     (12,451 )
Non-cash charges and credits:
                                                                        
Depreciation and amortization
     7,701       7,907       6,533       28,899       7,365       7,488       6,958       7,088       25,681  
Other
     11,238       5,137       7,031       6,986       (5,953 )     6,225       3,965       2,749       17,006  
Changes in selected working capital items:
                                                                        
Accounts receivable
     (13,080 )     (13,268 )     39,186       (25,948 )     (42,151 )     (16,355 )     (29,659 )     62,217       (66,296 )
Inventories
     10,368       (30,523 )     (50,027 )     (15,268 )     16,321       (3,463 )     (11,758 )     (16,368 )     9,188  
Accounts payable
     35,610       (5,669 )     (34 )     60,423       5,868       54,834       (10,833 )     10,554       33,207  
Other operating assets and liabilities
     9,160       (6,722 )     1,324       30,623       38,335       7,188       (2,340 )     (12,560 )     13,506  
Changes in finance receivables
     (3,645 )     (3,415 )     1,351       1,877       1,459       1,944       6,970       (8,496 )     (6,112 )
Changes in pledged finance receivables
     (133 )     (233 )     (196 )     36       (190 )     (248 )     (917 )     1,391       (14,866 )
Changes in other assets and liabilities
     (11,506 )     (3,720 )     (3,422 )     8,374       495       21,946       (12,920 )     (1,147 )     (11,090 )
 
                                                      
Cash flow from operating activities
     69,778       (28,641 )     29,454       142,412       54,282       100,973       (48,403 )     35,560       14,741  
 
                                                                        
INVESTMENTS
                                                                        
Purchases of property, plant and equipment
     (9,643 )     (3,744 )     (3,145 )     (15,443 )     (9,134 )     (1,342 )     (2,072 )     (2,895 )     (12,387 )
Proceeds from the sale of property, plant and equipment
     16       34       102       1,060       24       874       81       81       90  
Purchases of the equipment held for rental
     (11,890 )     (9,270 )     (18,121 )     (31,249 )     (5,590 )     (6,719 )     (8,851 )     (10,089 )     (26,689 )
Proceeds from the sale of equipment held for rental
     32,396       14,305       438       35,065       11,775       3,103       16,037       4,150       33,269  
Proceeds from the sale of Gradall excavator product line
     32,416       —       —       —       —       —       —       —       —  
Cash portion of acquisitions
     (58 )     (47,035 )     —       (105 )     —       —       (105 )     —       (109,557 )
Other
     422       (40 )     (28 )     366       (35 )     503       (56 )     (46 )     333  
 
                                                      
Cash flow used for investing activities
     43,659       (45,750 )     (20,754 )     (10,306 )     (2,960 )     (3,581 )     5,034       (8,799 )     (114,941 )
 
                                                                        
FINANCING
                                                                        
Net issuance (repayment) of short-term debt
     26       23       (11 )     (6 )     (58 )     (1,961 )     1,955       58       27  
Issuance of long-term debt
     10,000       —       —       156,018       (38 )     26,002       45,038       85,016       351,999  
Repayment of long-term debt
     (12,678 )     (96 )     (97 )     (232,666 )     (3,060 )     (99,374 )     (45,140 )     (85,092 )     (362,506 )
Issuance of limited recourse debt
     —       —       —       —       —       —       —       —       13,979  
Repayment of limited recourse debt
     —       —       —       —       —       —       —       —       (253 )
Payment of dividends
     (530 )     (264 )     (258 )     (925 )     (257 )     (224 )     (224 )     (220 )     (871 )
Net proceeds from issuance of common stock
     —       —       —       119,421       (113 )     119,534       —       —       —  
Exercise of stock options
     4,510       13,327       164       19,826       6,750       6,714       1,276       5,086       2,414  
Excess tax benefits from stock-based compensation
     7,323       13,017       44       —       —       —       —       —       —  
 
                                                      
Cash flow from financing activities
     8,651       26,007       (158 )     61,668       3,224       50,691       2,905       4,848       4,789  
 
                                                                        
CURRENCY ADJUSTMENTS
                                                                        
Effect of exchange rate changes on cash
     (537 )     781       (1,192 )     (7,833 )     (3,429 )     92       (1,729 )     (2,767 )     258  
 
                                                                        
CASH AND CASH EQUIVALENTS
                                                                        
Net change in cash and cash equivalents
     121,551       (47,603 )     7,350       185,941       51,117       148,175       (42,193 )     28,842       (95,153 )
Beginning balance
     183,344       230,947       223,597       37,656       172,480       24,305       66,498       37,656       132,809  
 
                                                      
 
                                                                        
Ending balance
   $ 304,895     $ 183,344     $ 230,947     $ 223,597     $ 223,597     $ 172,480     $ 24,305     $ 66,498     $ 37,656  
 
                                                      

 

 

     
JLG Industries, Inc. — Page 8
JLG INDUSTRIES, INC.
CONSOLIDATED SELECTED SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
(Quarterly data is unaudited)
                                                                         
            Quarter Ended             Fiscal Year             Quarter Ended             Fiscal Year  
    April 30,     January 29,     October 30,     Ended     July 31,     May 1,     January 30,     October 31,     Ended  
    2006     2006     2005     July 31, 2005     2005     2005     2005     2004     July 31, 2004  
SEGMENT INFORMATION
                                                                        
REVENUES:
                                                                        
Machinery
   $ 524,329     $ 412,327     $ 411,008     $ 1,461,401     $ 490,054     $ 437,595     $ 281,220     $ 252,532     $ 973,610  
Equipment Services
     103,015       78,789       63,654       259,878       75,145       64,313       69,070       51,350       204,454  
Access Financial Solutions
     2,271       3,310       3,061       13,751       4,380       3,448       3,144       2,779       15,898  
 
                                                      
 
   $ 629,615     $ 494,426     $ 477,723     $ 1,735,030     $ 569,579     $ 505,356     $ 353,434     $ 306,661     $ 1,193,962  
 
                                                      
 
                                                                        
SEGMENT PROFIT (LOSS):
                                                                        
Machinery
   $ 80,457     $ 44,587     $ 47,940     $ 111,974     $ 63,786     $ 51,995     $ 9,533     $ (13,340 )   $ 70,844  
Equipment services
     27,586       24,497       23,205       72,878       19,533       17,867       19,711       15,767       59,760  
Access Financial Solutions
     1,139       1,166       1,088       4,420       2,303       1,211       712       194       1,695  
Corporate expense
     (25,153 )     (21,412 )     (22,928 )     (75,407 )     (27,103 )     (21,254 )     (13,801 )     (13,249 )     (67,308 )
 
                                                      
Segment profit (loss)
     84,029       48,838       49,305       113,865       58,519       49,819       16,155       (10,628 )     64,991  
Add: AFS’ interest expense
     661       896       1,061       6,396       1,203       1,448       1,452       2,293       10,915  
 
                                                      
Operating Income (Loss)
   $ 84,690     $ 49,734     $ 50,366     $ 120,261     $ 59,722     $ 51,267     $ 17,607     $ (8,335 )   $ 75,906  
 
                                                      
 
                                                                        
PRODUCT GROUP REVENUES
                                                                        
Aerial work platforms
   $ 320,827     $ 234,710     $ 243,874     $ 888,073     $ 313,962     $ 278,071     $ 171,517     $ 124,523     $ 562,056  
Telehandlers
     202,637       160,715       158,103       511,766       157,948       141,660       92,490       119,668       358,865  
Excavators
     865       16,902       9,031       61,562       18,144       17,864       17,213       8,341       52,689  
After-sales service and support, including parts sales, and used and reconditioned equipment sales
     100,357       76,084       61,428       252,381       73,751       62,304       66,727       49,599       196,576  
Financial products
     2,216       3,256       2,974       11,915       2,826       3,373       3,056       2,660       15,203  
Rentals
     2,713       2,759       2,313       9,333       2,948       2,084       2,431       1,870       8,573  
 
                                                      
 
   $ 629,615     $ 494,426     $ 477,723     $ 1,735,030     $ 569,579     $ 505,356     $ 353,434     $ 306,661     $ 1,193,962  
 
                                                      
 
                                                                        
GEOGRAPHIC REVENUES
                                                                        
United States
   $ 456,630     $ 366,343     $ 354,913     $ 1,311,450     $ 437,066     $ 379,624     $ 256,027     $ 238,733     $ 923,696  
Europe
     124,621       83,349       62,533       264,032       84,126       86,224       56,819       36,863       178,392  
Other international
     48,364       44,734       60,277       159,548       48,387       39,508       40,588       31,065       91,874  
 
                                                      
 
   $ 629,615     $ 494,426     $ 477,723     $ 1,735,030     $ 569,579     $ 505,356     $ 353,434     $ 306,661     $ 1,193,962  
 
                                                      

 

 

JLG Industries, Inc. — Page 9
JLG INDUSTRIES, INC.
EBITDA
QUARTERLY PERIODS
(in thousands)
                                                                 
    April 30,     January 29,     October 30,     July 31,     May 1,     January 30,     October 31,     July 31,  
    2006     2006     2005     2005     2005     2005     2004     2004  
Net income (loss)
   $ 46,187     $ 27,420     $ 27,866     $ 35,696     $ 22,722     $ 7,484     $ (8,729 )   $ 15,271  
Interest expense
     6,565       8,378       5,977       6,326       8,554       8,322       8,996       9,274  
Income tax provision (benefit)
     30,499       15,695       18,968       21,716       15,022       4,347       (5,170 )     8,748  
Depreciation and amortization
     7,701       7,907       6,533       7,365       7,488       6,958       7,088       5,070  
 
                                                
EBITDA
   $ 90,952     $ 59,400     $ 59,344     $ 71,103     $ 53,786     $ 27,111     $ 2,185     $ 38,363  
 
                                                
We monitor our EBITDA, which is a supplemental measure to GAAP that provides additional information concerning our leverage position and our historical ability to meet debt service and capital expenditure and working capital requirements. EBITDA also is an indicator of profitability, particularly in our capital-intensive industry. EBITDA reflects our earnings (loss) before interest, taxes and depreciation and amortization. EBITDA as presented differs from measures of EBITDA calculated for purposes of financial covenants in our note indentures and senior credit facilities.

 

 

JLG Industries, Inc. — Page 10
JLG INDUSTRIES, INC.
EBITDA AND EBITDA MARGINS
TRAILING TWELVE MONTH PERIODS
(in thousands)
                                                                 
    April 30,     January 29,     October 30,     July 31,     May 1,     January 30,     October 31,     July 31,  
    2006     2006     2005     2005     2005     2005     2004     2004  
Net income
   $ 137,169     $ 113,704     $ 93,768     $ 57,173     $ 36,748     $ 22,713     $ 17,387     $ 26,649  
Interest expense
     27,246       29,235       29,179       32,198       35,146       35,992       37,218       38,098  
Income tax provision
     86,878       71,401       60,053       35,915       22,947       12,815       9,765       15,232  
Depreciation and amortization
     29,506       29,293       28,344       28,899       26,604       26,475       26,283       25,681  
 
                                                
EBITDA
   $ 280,799     $ 243,633     $ 211,344     $ 154,185     $ 121,445     $ 97,995     $ 90,653     $ 105,660  
 
                                                
 
                                                                
Revenues
   $ 2,171,343     $ 2,047,084     $ 1,906,092     $ 1,735,030     $ 1,590,611     $ 1,403,942     $ 1,287,038     $ 1,193,962  
 
                                                
 
                                                                
EBITDA Margin
     12.9 %     11.9 %     11.1 %     8.9 %     7.6 %     7.0 %     7.0 %     8.8 %
 
                                                
We monitor our EBITDA, which is a supplemental measure to GAAP that provides additional information concerning our leverage position and our historical ability to meet debt service and capital expenditure and working capital requirements. EBITDA also is an indicator of profitability, particularly in our capital-intensive industry. EBITDA reflects our earnings before interest, taxes and depreciation and amortization. EBITDA as presented differs from measures of EBITDA calculated for purposes of financial covenants in our note indentures and senior credit facilities.

 

 

JLG Industries, Inc. — Page 11
JLG INDUSTRIES, INC.
NET DEBT
(in thousands)
                                                                 
    April 30,     January 29,     October 30,     July 31,     May 1,     January 30,     October 31,     July 31,  
    2006     2006     2005     2005     2005     2005     2004     2004  
Revolving credit facilities
   $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —  
Cash management facilities
     —       —       —       —       —       1,944       —       —  
$125 million senior notes
     97,545       109,975       109,975       109,975       112,975       125,000       125,000       125,000  
$175 million senior subordinated notes
     113,750       113,750       113,750       113,750       113,750       175,000       175,000       175,000  
Miscellaneous debt
     19,455       9,678       4,751       4,859       5,014       5,128       5,219       5,236  
Fair value of interest rate swaps
     (9,908 )     (7,799 )     (8,428 )     (5,909 )     (6,378 )     (6,120 )     (6,492 )     (8,814 )
Gain on terminated interest rate swap
     2,689       2,799       2,908       3,018       3,128       4,981       5,149       5,318  
 
                                                
Bank debt and notes
     223,531       228,403       222,956       225,693       228,489       305,933       303,876       301,740  
Limited recourse debt from finance receivables monetizations *
     28,516       45,318       55,921       63,658       70,586       77,601       85,733       121,794  
 
                                                
Total balance sheet debt
     252,047       273,721       278,877       289,351       299,075       383,534       389,609       423,534  
 
                                                
Net present value of
off-balance sheet rental fleet lease
     —       —       —       —       656       755       1,012       1,070  
Net present value of
off-balance sheet production equipment leases
     —       —       —       —       2,583       3,709       3,991       4,399  
 
                                                
Total off-balance sheet financing
     —       —       —       —       3,239       4,464       5,003       5,469  
 
                                                
Total balance sheet debt and off-balance sheet financing
     252,047       273,721       278,877       289,351       302,314       387,998       394,612       429,003  
Less: cash and cash equivalents
     304,895       183,344       230,947       223,597       172,480       24,305       66,498       37,656  
Less: limited recourse debt from finance receivables monetizations
     28,516       45,318       55,921       63,658       70,586       77,601       85,733       121,794  
 
                                                
Net debt
   $ (81,364 )   $ 45,059     $ (7,991 )   $ 2,096     $ 59,248     $ 286,092     $ 242,381     $ 269,553  
 
                                                
 
                                                                
Shareholders’ Equity
   $ 625,736     $ 566,870     $ 507,140     $ 478,592     $ 436,238     $ 284,746     $ 276,780     $ 281,270  
 
                                                
 
                                                                
Net Debt-to-Net Debt plus Shareholders’ Equity
     —       7 %     —       —       12 %     50 %     47 %     49 %
 
                                                
 
                                                                
Total Balance Sheet
Debt-to-Total Balance Sheet Debt plus Shareholders’ Equity
     29 %     33 %     35 %     38 %     41 %     57 %     58 %     60 %
 
                                                
 
                                                                 
*   Maximum loss exposure under loss pool agreements related to finance receivable monetizations
   $ 8,818     $ 11,346     $ 11,855     $ 22,160     $ 22,168     $ 22,168     $ 22,168     $ 22,198  
 
                                                
We monitor our net debt, which is a supplemental measure to GAAP that provides additional information concerning our leverage position and our historical ability to meet debt service and capital expenditure and working capital requirements. We define net debt as the sum of total balance sheet debt and other off-balance sheet financing, minus cash and limited recourse debt arising from our monetizations of customer finance receivables.

 

 

JLG Industries, Inc. — Page 12
JLG INDUSTRIES, INC.
FREE CASH FLOW
(in thousands)
                                                                         
            Quarter Ended     Fiscal Year             Quarter Ended             Fiscal Year  
    April 30,     January 29,     October 30,     Ended     July 31,     May 1,     January 30,     October 31,     Ended  
    2006     2006     2005     July 31, 2005     2005     2005     2005     2004     July 31, 2004  
Net income (loss)
   $ 46,187     $ 27,420     $ 27,866     $ 57,173     $ 35,696     $ 22,722     $ 7,484     $ (8,729 )   $ 26,649  
Adjustments to reconcile net income (loss) to cash flow from operating activities:
                                                                        
Non-cash items
     (3,183 )     7,489       13,406       25,122       (1,551 )     12,405       5,570       8,698       30,555  
Accounts receivable
     (13,080 )     (13,268 )     39,186       (25,948 )     (42,151 )     (16,355 )     (29,659 )     62,217       (66,296 )
Inventories
     10,368       (30,523 )     (50,027 )     (15,268 )     16,321       (3,463 )     (11,758 )     (16,368 )     9,188  
Other current assets
     11,633       4,345       9,535       (12,553 )     899       (14,132 )     3,497       (2,817 )     8,780  
Accounts payable
     35,610       (5,669 )     (34 )     60,423       5,868       54,834       (10,833 )     10,554       33,207  
Accrued expenses
     (2,473 )     (11,067 )     (8,211 )     43,176       37,436       21,320       (5,837 )     (9,743 )     4,726  
Finance receivables
     (3,645 )     (3,415 )     1,351       1,877       1,459       1,944       6,970       (8,496 )     (6,112 )
Other cash from operations
     (11,506 )     (3,720 )     (3,422 )     8,374       495       21,946       (12,920 )     (1,147 )     (11,090 )
Purchases of property, plant and equipment
     (9,643 )     (3,744 )     (3,145 )     (15,443 )     (9,134 )     (1,342 )     (2,072 )     (2,895 )     (12,387 )
Proceeds from the sale of property, plant and equipment
     16       34       102       1,060       24       874       81       81       90  
Purchases of equipment held for rental
     (11,890 )     (9,270 )     (18,121 )     (31,249 )     (5,590 )     (6,719 )     (8,851 )     (10,089 )     (26,689 )
Proceeds from the sale of equipment held for rental
     32,396       14,305       438       35,065       11,775       3,103       16,037       4,150       33,269  
Proceeds from the sale of Gradall excavator product line
     32,416       —       —       —       —       —       —       —       —  
Cash portion of acquisitions
     (58 )     (47,035 )     —       (105 )     —       —       (105 )     —       (109,557 )
Other cash from investments
     422       (40 )     (28 )     366       (35 )     503       (56 )     (46 )     333  
Payment of dividends
     (530 )     (264 )     (258 )     (925 )     (257 )     (224 )     (224 )     (220 )     (871 )
Net proceeds from issuance of common stock
     —       —       —       119,421       (113 )     119,534       —       —       —  
Exercise of stock options
     4,510       13,327       164       19,826       6,750       6,714       1,276       5,086       2,414  
Excess tax benefits from stock-based compensation
     7,323       13,017       44       —       —       —       —       —       —  
Effect of exchange rate changes on cash
     (537 )     781       (1,192 )     (7,833 )     (3,429 )     92       (1,729 )     (2,767 )     258  
Seller financing
     —       (5,000 )     —       —       —       —       —       —       (10,000 )
Capital lease assumed in OmniQuip acquisition
     —       —       —       —       —       —       —       —       (3,630 )
Debt assumed in Delta acquisition
     —       —       —       —       —       —       —       —       (103 )
Other (1)
     2,087       (753 )     2,433       4,898       2,689       3,088       (582 )     (297 )     (1,184 )
 
                                                      
Free Cash Flow
   $ 126,423     $ (53,050 )   $ 10,087     $ 267,457     $ 57,152     $ 226,844     $ (43,711 )   $ 27,172     $ (98,450 )
 
                                                      
 
(1)   Includes changes in other off-balance sheet debt.
In addition to measuring our cash flow generation and usage based upon the Statements of Cash Flows, we also measure our free cash flow. We define free cash flow as cash flow from operating activities, investing activities, payment of dividends, exercise of stock options, and the effect of exchange rate changes on cash less changes in accounts receivable securitization, limited recourse debt from finance receivables monetizations and off-balance sheet debt. Our measure of free cash flow may not be comparable to similarly titled measures being disclosed by other companies and is not a measure of financial performance that is in accordance with GAAP. We utilize free cash flow to explain the change in our net debt position from the prior period.

 

 

JLG Industries, Inc. — Page 13
JLG INDUSTRIES, INC.
STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
                                                 
    CONSOLIDATED     EQUIPMENT OPERATIONS     FINANCIAL SERVICES  
    JLG Industries, Inc. and     JLG Industries, Inc. with Access        
    Consolidated Subsidiaries     Financial Solutions on the Equity Basis     Access Financial Solutions  
    Nine Months Ended     Nine Months Ended     Nine Months Ended  
    April 30,     May 1,     April 30,     May 1,     April 30,     May 1,  
    2006     2005     2006     2005     2006     2005  
Revenues
                                                
Net sales
   $ 1,585,533     $ 1,149,977     $ 1,585,533     $ 1,149,977     $ —     $ —  
Financial products
     8,446       9,089       —       —       8,446       9,089  
Rentals
     7,785       6,385       7,589       6,103       196       282  
 
                                    
 
     1,601,764       1,165,451       1,593,122       1,156,080       8,642       9,371  
Cost of sales
     1,292,977       987,892       1,292,825       987,291       152       601  
 
                                    
Gross profit
     308,787       177,559       300,297       168,789       8,490       8,770  
Selling and administrative expenses
     118,387       98,456       115,908       96,996       2,479       1,460  
Product development expenses
     20,182       18,564       20,182       18,564       —       —  
Gain on sale of Gradall excavator product line
     (14,572 )     —       (14,572 )     —       —       —  
 
                                    
Income from operations
     184,790       60,539       178,779       53,229       6,011       7,310  
Other income (deductions):
                                                
Interest expense (net of interest income)
     (15,184 )     (23,704 )     (12,566 )     (18,511 )     (2,618 )     (5,193 )
Miscellaneous, net
     (2,971 )     (1,159 )     (2,971 )     (1,159 )     —       —  
 
                                    
Income before taxes
     166,635       35,676       163,242       33,559       3,393       2,117  
Income tax provision
     65,162       14,199       63,835       13,356       1,327       843  
Equity in income of Access Financial Solutions
     —       —       2,066       1,274       —       —  
 
                                    
Net income
   $ 101,473     $ 21,477     $ 101,473     $ 21,477     $ 2,066     $ 1,274  
 
                                    
 
                                                
Earnings per common share
   $ .98     $ .24                                  
 
                                            
 
                                                
Earnings per common share — assuming dilution
   $ .95     $ .23                                  
 
                                            
 
                                                
Cash dividends per share
   $ .01     $ .0075                                  
 
                                            
 
                                                
Weighted average shares outstanding
     103,873       90,090                                  
 
                                            
 
                                                
Weighted average shares outstanding — assuming dilution
     106,261       92,596                                  
 
                                            

 

 

JLG Industries, Inc. — Page14
JLG INDUSTRIES, INC.
BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
                                                 
    CONSOLIDATED     EQUIPMENT OPERATIONS     FINANCIAL SERVICES  
    JLG Industries, Inc. and     JLG Industries, Inc. with Access        
    Consolidated Subsidiaries     Financial Solutions on the Equity Basis     Access Financial Solutions  
    April 30,     July 31,     April 30,     July 31,     April 30,     July 31,  
    2006     2005     2006     2005     2006     2005  
ASSETS
                                                
Current assets
                                                
Cash and cash equivalents
   $ 304,895     $ 223,597     $ 304,895     $ 223,597     $ —     $ —  
Trade accounts and finance receivables — net
     393,966       419,866       352,724       373,417       41,242       46,449  
Inventories
     216,901       169,097       216,901       169,097       —       —  
Other current assets
     26,595       56,739       26,595       56,739       —       —  
 
                                    
Total current assets
     942,357       869,299       901,115       822,850       41,242       46,449  
Property, plant and equipment — net
     87,447       85,855       87,339       85,698       108       157  
Equipment held for rental — net
     21,934       22,570       21,771       22,259       163       311  
Finance receivables, less current portion
     29,472       30,354       —       —       29,472       30,354  
Pledged receivables, less current portion
     11,923       33,649       —       —       11,923       33,649  
Goodwill
     60,513       61,641       60,513       61,641       —       —  
Intangible assets — net
     74,557       32,086       74,557       32,086       —       —  
Investment in Access Financial Solutions
     —       —       42,551       40,485       —       —  
Receivable from Access Financial Solutions
     —       —       10,157       5,868       —       —  
Other assets
     72,197       68,143       72,088       68,009       109       134  
 
                                    
 
   $ 1,300,400     $ 1,203,597     $ 1,270,091     $ 1,138,896     $ 83,017     $ 111,054  
 
                                    
 
                                                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                                
Current liabilities
                                                
Short-term debt and current portion of long-term debt
   $ 8,447     $ 1,496     $ 8,447     $ 1,496     $ —     $ —  
Current portion of limited recourse debt from finance receivables monetizations
     16,531       29,642       —       —       16,531       29,642  
Accounts payable
     221,342       200,323       221,342       200,323       —       —  
Accrued expenses
     120,444       148,651       120,433       148,615       11       36  
 
                                    
Total current liabilities
     366,764       380,112       350,222       350,434       16,542       29,678  
Long-term debt, less current portion
     215,084       224,197       215,084       224,197       —       —  
Limited recourse debt from finance receivables monetizations, less current portion
     11,985       34,016       —       —       11,985       34,016  
Payable to JLG Industries, Inc.
     —       —       —       —       10,157       5,868  
Accrued post-retirement benefits
     25,193       31,113       25,193       31,113       —       —  
Other long-term liabilities
     23,152       27,233       23,152       27,233       —       —  
Provisions for contingencies
     32,486       28,334       30,704       27,327       1,782       1,007  
Shareholders’ equity
                                                
Capital stock:
                                                
Authorized shares: 200,000 at $.20 par value
                                               
Issued and outstanding shares: 106,338 shares; fiscal 2005 — 103,290 shares
     21,268       20,658       21,268       20,658       30,000       30,000  
Additional paid-in capital
     206,710       170,367       206,710       170,367       —       —  
Retained earnings
     410,937       310,516       410,937       310,516       12,551       10,485  
Unearned compensation
     —       (7,397 )     —       (7,397 )     —       —  
Accumulated other comprehensive loss
     (13,179 )     (15,552 )     (13,179 )     (15,552 )     —       —  
 
                                    
Total shareholders’ equity
     625,736       478,592       625,736       478,592       42,551       40,485  
 
                                    
 
   $ 1,300,400     $ 1,203,597     $ 1,270,091     $ 1,138,896     $ 83,017     $ 111,054  
 
                                    

 

 

JLG Industries, Inc. — Page 15
JLG INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                 
    CONSOLIDATED     EQUIPMENT OPERATIONS     FINANCIAL SERVICES  
    JLG Industries, Inc. and     JLG Industries, Inc. with Access        
    Consolidated Subsidiaries     Financial Solutions on the Equity Basis     Access Financial Solutions  
    Nine Months Ended     Nine Months Ended     Nine Months Ended  
    April 30,     May 1,     April 30,     May 1,     April 30,     May 1,  
    2006     2005     2006     2005     2006     2005  
Operations
                                                
Net income
   $ 101,473     $ 21,477     $ 101,473     $ 21,477     $ 2,066     $ 1,274  
Adjustments to reconcile net income to cash flow from operating activities:
                                                
Gain on sale of Gradall excavator product line
     (14,572 )     —       (14,572 )     —       —       —  
(Gain) loss on sale of property, plant and equipment
     (24 )     120       (24 )     120       —       —  
(Gain) loss on sale of equipment held for rental
     (13,239 )     (7,920 )     (13,239 )     (7,920 )     —       —  
Non-cash charges and credits:
                                                
Depreciation and amortization
     22,141       21,534       21,939       20,913       202       621  
Other
     23,406       12,939       22,530       13,341       876       (402 )
Changes in selected working capital items:
                                                
Accounts receivable
     12,838       16,203       14,054       (10,498 )     (1,216 )     26,701  
Inventories
     (70,182 )     (31,589 )     (70,182 )     (31,589 )     —       —  
Accounts payable
     29,907       54,555       29,907       54,555       —       —  
Other operating assets and liabilities
     3,762       (7,712 )     3,787       (7,588 )     (25 )     (124 )
Changes in finance receivables
     (5,709 )     418       —       —       (5,709 )     418  
Changes in pledged finance receivables
     (562 )     226       —       —       (562 )     226  
Changes in other assets and liabilities
     (18,648 )     7,879       (18,753 )     7,329       105       550  
 
                                    
Cash flow from operating activities
     70,591       88,130       76,920       60,140       (4,263 )     29,264  
 
                                                
Investments
                                                
Purchases of property, plant and equipment
     (16,532 )     (6,309 )     (16,532 )     (6,114 )     —       (195 )
Proceeds from the sale of property, plant and equipment
     152       1,036       152       1,036       —       —  
Purchases of equipment held for rental
     (39,281 )     (25,659 )     (39,281 )     (25,582 )     —       (77 )
Proceeds from the sale of equipment held for rental
     47,139       23,290       47,139       23,290       —       —  
Proceeds from the sale of Gradall excavator product line
     32,416       —       32,416       —       —       —  
Cash portion of acquisitions
     (47,093 )     (105 )     (47,093 )     (105 )     —       —  
Investment in income of Access Financial Solutions
     —       —       (2,066 )     (1,274 )     —       —  
Other
     354       401       354       401       —       —  
 
                                    
Cash flow used by investing activities
     (22,845 )     (7,346 )     (24,911 )     (8,348 )     —       (272 )
 
                                                
Financing
                                                
Net increase in short-term debt
     38       52       38       52       —       —  
Issuance of long-term debt
     10,000       156,056       10,000       156,056       —       —  
Repayment of long-term debt
     (12,871 )     (229,606 )     (12,871 )     (229,606 )     —       —  
Issuance of limited recourse debt
     —       —       —       —       —       —  
Repayment of limited recourse debt
     —       —       —       —       —       —  
Change in receivable from Access Financial Solutions
     —       —       (4,289 )     28,997       —       —  
Change in payable to JLG Industries, Inc.
     —       —       —       —       4,289       (28,997 )
Payment of dividends
     (1,052 )     (668 )     (1,052 )     (668 )     —       —  
Net proceeds from issuance of common stock
     —       119,534       —       119,534       —       —  
Exercise of stock options
     18,001       13,076       18,001       13,076       —       —  
Excess tax benefits from
stock-based compensation
     20,384       —       20,384       —       —       —  
 
                                    
Cash flow from financing activities
     34,500       58,444       30,211       87,441       4,289       (28,997 )
 
                                                
Currency Adjustments
                                                
Effect of exchange rate changes on cash
     (948 )     (4,404 )     (922 )     (4,409 )     (26 )     5  
 
                                    
 
                                                
Cash and Cash Equivalents
                                                
Net change in cash and cash equivalents
     81,298       134,824       81,298       134,824       —       —  
Beginning balance
     223,597       37,656       223,597       37,656       —       —  
 
                                    
Ending balance
   $ 304,895     $ 172,480     $ 304,895     $ 172,480     $ —     $ —