-----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, SltLjDDFWeZZOP7c6Pzp0x1t4htvnMXqGNeGjDv8oZh6J0ndci2vLovusQbb3TxA Qy5uFilL2ei2p4OLcfIfJw== 0000897069-01-000161.txt : 20010223 0000897069-01-000161.hdr.sgml : 20010223 ACCESSION NUMBER: 0000897069-01-000161 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010215 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010215 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GEHL CO CENTRAL INDEX KEY: 0000856386 STANDARD INDUSTRIAL CLASSIFICATION: FARM MACHINERY & EQUIPMENT [3523] IRS NUMBER: 390300430 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-18110 FILM NUMBER: 1548152 BUSINESS ADDRESS: STREET 1: 143 WATER STREET CITY: WEST BEND STATE: WI ZIP: 53095 BUSINESS PHONE: 4143349461 MAIL ADDRESS: STREET 1: 143 WATER STREET CITY: WEST BEND STATE: WI ZIP: 53095 8-K 1 0001.txt CURRENT REPORT SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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): February 15, 2001 Gehl Company ---------------------------------------------------- (Exact name of registrant as specified in its charter) Wisconsin 0-18110 39-0300430 - --------------- --------------- ---------- (State or other (Commission File (IRS Employer jurisdiction of Number) Identification No.) incorporation) 143 Water Street, West Bend, Wisconsin 53095 ------------------------------------------------------------ (Address of principal executive offices, including zip code) (262) 334-9461 ------------------------------- (Registrant's telephone number) Item 7. Financial Statements and Exhibits. - ------ --------------------------------- (a) Not applicable. (b) Not applicable. (c) Exhibits. The following exhibit is being filed herewith: -------- (99) Press Release and Letter to Shareholders of Gehl Company, dated February 15, 2001. Item 9. Regulation FD Disclosure. - ------ ------------------------ On February 15, 2001, Gehl Company (the "Company") issued a press release and sent a letter to its shareholders disclosing, among other things, the Company's fourth quarter and year-end financial results for the reporting periods ended December 31, 2000. The press release also sets forth the Company's outlook for specified subsequent periods. A copy of the Company's press release and letter to shareholders are attached as Exhibit 99 to this Current Report on Form 8-K (this "Current Report"). The Company intends that certain matters disclosed in this Current Report (including exhibits hereto) are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding the Company's future financial position, business strategy, targets, projected sales, costs, earnings and capital spending, and the plans and objectives of management for future operations, are forward-looking statements. When used in this Current Report (including exhibits hereto), words such as the Company "believes," "anticipates," "expects" or "estimates" or words of similar meaning are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control, that could cause actual results to differ materially from those anticipated as of February 15, 2001. Factors that could cause such a variance include, but are not limited to, unanticipated changes in general economic and capital market conditions, the Company's ability to implement successfully its strategic initiatives, market acceptance of newly introduced products, the cyclical nature of the Company's business, the Company's and its customers' access to credit, competitive pricing, product initiatives and other actions taken by competitors, disruptions in production capacity, excess inventory levels, the effect of changes in laws and regulations (including government subsidies and international trade regulations), technological difficulties, changes in environmental laws, the impact of any acquisition effected by the Company, and employee and labor relations. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this Current Report (including exhibits hereto) are only made as of February 15, 2001, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. In addition, the Company's expectations for fiscal years 2001 and 2002 are based in part on certain assumptions made by the Company, including those relating to commodities prices, which are strongly affected by weather and other factors and can fluctuate significantly, housing starts and other construction activities, which are sensitive to, among other things, interest rates and government spending, and the performance of the U.S. economy generally. The accuracy of these or other assumptions could have a material effect on the Company's ability to achieve its expectations. -2- SIGNATURES ---------- 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 hereunto duly authorized. GEHL COMPANY Date: February 15, 2001 By:/s/ Kenneth P. Hahn ----------------------------------- Kenneth P. Hahn Vice President of Finance and Treasurer -3- GEHL COMPANY Exhibit Index to Current Report on Form 8-K Dated February 15, 2001 Exhibit Number - ------ (99) Press Release and Letter to Shareholders of Gehl Company, dated February 15, 2001. -4- EX-99 2 0002.txt PRESS RELEASE [GRAPHIC OMITTED] GEHL Gehl Company Tel: 262/334-9461 143 Water Street Fax: 262/334-6603 P.O. Box 179 http://www.gehl.com West Bend, WI 53095-0179 USA February 15, 2001 Dear Fellow Shareholder: Today, Gehl Company announced results for the fourth quarter and year ended December 31, 2000, and we are pleased to enclose your personal copy of the news release. As the release explains, your Company's latest financial results exceeded analysts' expectations. We urge you to give your careful attention to the release and its discussions of the progress we have made in the year just ended, and several strategic developments we expect to see in 2001, including: o New Product Lines Begin Shipping in the First Half; o E-Commerce Initiative to Commence in the Second Half; and o Acquisition Opportunities Actively Sought After seven straight years of record earnings, the year 2000 was clearly one of transition for your Company. We are excited and optimistic about the future of Gehl Company, and we believe the actions we are taking will enhance the value of your investment in Gehl. Looking ahead, we will continue to keep you advised as to your Company's progress. On behalf of your Board of Directors and Management, thank you for your continued support. Sincerely, William D. Gehl Chairman, President and Chief Executive Officer The enclosed correspondence contains "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. Shareholders are urged to read the disclaimer relating to forward-looking statements contained in the enclosed press release and are cautioned not to place undue reliance on such forward looking-statements. [GRAPHIC OMITTED] GEHL Gehl Company Tel: 262/334-9461 143 Water Street Fax: 262/334-6603 P.O. Box 179 http://www.gehl.com West Bend, WI 53095-0179 USA News Release Highlights (News Release to Follow) GEHL COMPANY REPORTS 4TH QUARTER AND FULL YEAR RESULTS Earnings Exceed Analysts' Expectations Business Outlook New Product Lines Begin Shipping E-Commerce Initiative Commences in Second Half Acquisition Opportunities Actively Sought [GRAPHIC OMITTED] GEHL Gehl Company Tel: 262/334-9461 143 Water Street Fax: 262/334-6603 P.O. Box 179 http://www.gehl.com CONTACT: West Bend, WI 53095-0179 Kenneth Hahn USA Vice President of Finance and Treasurer 262-334-6632 NEWS RELEASE FOR IMMEDIATE RELEASE - --------------------- GEHL COMPANY REPORTS 4TH QUARTER AND FULL YEAR RESULTS ------------------------------------------------------ Earnings Exceed Analysts' Expectations -------------------------------------- Company Provides Forecast for 2001 and 2002 ------------------------------------------- WEST BEND, WI, February 15, 2001 -- Gehl Company (NASDAQ: GEHL), the Wisconsin-based manufacturer of light construction and agricultural equipment, today reported fourth quarter and year-end 2000 results that exceeded analysts' expectations for both reporting periods ended December 31, 2000. For the fourth quarter, Gehl reported net income of $.3 million, or $.05 per diluted share; and $9.7 million, or $1.72 per diluted share, for the full year. Both periods included a gain of $.5 million, or $.10 per diluted share, recognized on the disposition of a former branch service center. Analysts had expected earnings to range from $1.48 to $1.58 per diluted share for the full year, and from negative $(.05) to negative $(.15) per diluted share for the fourth quarter. The fourth quarter and full year results were decreases from the $3.8 million, or $.64 per diluted share, reported by the Company for the fourth quarter of 1999, and the record earnings of $20.2 million, or $3.17 per diluted share, for the full year ended December 31, 1999. Fourth quarter 2000 net sales of $52.1 million were 19% lower than the $64.4 million in net sales recorded for the fourth quarter of 1999. Net sales for the full year ended December 31, 2000 of $258.1 million, in line with the Company's forecast, were 11.5% below the record sales of $291.4 million for the full year ended December 31, (M O R E) Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 2 1999. Sales were lower due primarily to the slowing U.S. economy and the weak Euro abroad, coupled with the effects of increased interest rates on domestic housing starts and in the agricultural sector the lowest milk prices in the last 23 years. William D. Gehl, Chairman, President and CEO, stated "We have just completed a challenging year for the Company after seven consecutive years of progressively increasing sales and earnings. During those years, the Company's net sales and earnings per share grew at compounded annual growth rates of 13% and 107%, respectively. However, as the U.S. economy began to slow in the second half of the year, our business, like others in our cyclical industry, was negatively impacted. While we are pleased to report earnings that exceeded the market's expectations, we are not satisfied with these results. Gehl's management team continues to adjust to the rapidly changing economic environment by reducing headcount and decreasing production levels to meet lowered demand. We also continue to position the Company and make the necessary investments for long-term growth, all as part of our ongoing efforts to enhance shareholder value." CONSTRUCTION EQUIPMENT SALES ---------------------------- Sales of construction equipment in the fourth quarter of 2000 were $27.7 million versus $38.2 million recorded in the fourth quarter of 1999, a decrease of 27%. Construction equipment sales for the full year ended December 31, 2000 were $151.1 million, 13% below the $173.6 million for the full year ended December 31, 1999. Reductions from the 1999 levels reflect lower shipments and retail sales of telescopic handlers, consistent with an industry-wide reduced demand for telescopic handler equipment. Industry-wide retail sales of telescopic handlers in North America in 2000 were reported to be 15% to 20% below 1999's levels. In addition, a reduction in overseas demand for skid loaders, resulting in part from the continued weakness of the Euro, further contributed to the decrease from 1999 sales levels. (M O R E) Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 3 Offsetting these negative demand factors, the Company realized a positive contribution, in the fourth quarter and full year periods of 2000, from shipments of new equipment, including compact excavators and mini-loaders, introduced within the past eighteen months. AGRICULTURAL EQUIPMENT SALES ---------------------------- Despite record low milk prices, sales of agricultural equipment in the fourth quarter of 2000 of $24.4 million were only slightly below the $26.2 million recorded in the fourth quarter of 1999. Agricultural equipment sales for the full year ended December 31, 2000 were $107.0 million, 9% lower than the $117.8 million recorded for the full year ended December 31, 1999. The reductions from 1999's sales levels were due primarily to the continuation of record low milk prices throughout 2000, and the effect of higher interest rates and fuel costs. GROSS MARGINS AND OPERATING EXPENSES ------------------------------------ For the fourth quarter of 2000, the Company's gross margin was 24.5%, versus 26.3% for the fourth quarter of 1999. For the full year ended December 31, 2000, total gross margin was 26.4% vs. 27.6% for 1999. Gross margin for construction equipment was 22.3% and 24.3% for the three month and full year periods, respectively, both ended December 31, 2000, compared to 25.5% and 26.8%, respectively, for the comparable periods of 1999. The reductions in construction equipment gross margins were generally the result of competitive market conditions, a less favorable mix of product shipments and reduced production levels; and were partially offset by improvements in manufacturing efficiencies. Gross margin for agricultural equipment was 27.0% and 29.2%, for the three month and full year periods, respectively, both ended December 31, 2000, compared to the 27.3% and 28.9% margins realized for the comparable periods of 1999. (M O R E) Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 4 Operating expense levels in the fourth quarter of 2000 increased to 21.1% of net sales, from 15.6% in the fourth quarter of 1999, and for the full year 2000 increased to 17.8% of net sales, from 15.6% for the full year 1999. In order to support long-term growth, Gehl continues to make significant investments in projects such as e-commerce, improved parts distribution, new product development and enterprise resource planning (ERP) systems. Such investments have impacted operating expenses as a percent of net sales. OUTLOOK ------- Markets - ------- The Company believes that, in general, the overall economics of its markets will continue to be soft, especially through the first half of 2001. Additionally, the Company expects that the general economic environment, for at least the first half of 2001, will not differ substantially from that of the second half of 2000, due to the interest rate increases experienced from mid-1999 through 2000, relatively high fuel costs and an upward trend in unemployment. Although the Company anticipates that the current interest rate environment should assist in stimulating economic growth, the Company does not foresee significant improvement occurring in the construction equipment or agricultural equipment markets until the second half of 2001, at the earliest. o In the North American construction equipment sector, the Company expects the skid loader market, which has enjoyed double-digit growth in recent years, to continue to grow in 2001 - but at a slower pace. The Company expects the telescopic handler market to decline for the second straight year, perhaps in the range of 10% to 15%, due primarily to the continued downturn in residential and non-residential construction markets as the result of high interest rates in 1999 and 2000. The North American compact excavator market, the growth of which the Company believes remains substantially (M O R E) Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 5 behind the similar European market, shows prospects of increasing by 10% to 15% in 2001. o In the North American agricultural equipment market, the industry faces an estimated 3% to 5% reduction in the number of dairy farms, as well as a continuation of low milk prices for a substantial portion of 2001. o Internationally, the Company expects business in 2001 to remain at levels similar to those achieved in 2000. The Company believes an opportunity exists for skid steer loader sales in Europe to increase, if the Euro continues to strengthen against the U.S. dollar. Strategic Direction - ------------------- As part of its ongoing commitment to maximize long-term shareholder value, the Company has re-doubled its efforts to overcome the twin challenges of competitive markets and adverse economic conditions. The Company's Board of Directors and management team have commenced certain strategic initiatives which the Company believes will have a significant positive impact on the Company in the years ahead. The strategic focus for 2001 and 2002 includes the following: 1. Strategic Growth in the Compact Equipment Market - The Company will continue to focus primarily on broadening its market coverage and expanding its product offerings to sustain sales growth in the compact construction equipment and compact agricultural equipment marketplaces through continuing research and development projects on skid loaders and telescopic handlers, strategic acquisitions and new distribution relationships. 2. Begin Shipping Significant New Product Lines - The Company has significantly expanded its product lines. In the first half of 2001, the Company will begin shipping eight new skid loader models, under the Gehl and (M O R E) Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 6 Mustang brands, in both the construction and agricultural segments. With the addition of these new models the Company now offers the broadest range of skid loaders in the industry, including two models with an operating load capacity of 3600 lbs. and lift height of 142", surpassing all other skid loader brands currently in the market. In January, 2001, Gehl began shipping an entirely new line of round balers into the agricultural market. In November, 2000, the Company introduced the first North American manufactured telescopic handler designed exclusively for the agricultural market. Offered with a full line of versatile attachments, the Company expects this new product to be popular with the large farm operations which increasingly dominate agricultural production in the U.S. today. Later this month the Company will also introduce a new 12 ton excavator, adding to its already extensive range of compact excavation equipment. The Company has also extended its range of attachments and accessories to further enhance the versatility of its Gehl and Mustang branded compact equipment. 3. Expanding Distribution and Leveraging Multiple Distribution Channels - The Company intends to expand distribution and leverage its multiple distribution channels to grow sales revenue in 2001 and 2002. The Company's 2001 objectives include adding dealer coverage in key market areas, increasing sales to independently owned rental operations and adding telescopic handlers, compact excavators and mini-loaders to the lines of compact equipment currently offered to rural equipment dealers. The Company intends to further leverage its existing distribution channel by offering additional compact equipment to geographic markets not currently served by Gehl construction equipment dealers and to market telescopic handlers and mini-loaders, products currently marketed under only the Gehl brand name, under the Mustang brand name. Dan Keyes, the Company's new Vice President of Sales and Marketing, who comes to Gehl from CNH Global N.V. (formerly Case Corporation), will have full responsibility for sales and marketing, including distribution development, in both the construction and agricultural equipment businesses. (M O R E) Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 7 4. Actively Seeking European and Domestic Acquisitions - The Company continues, as it has over the last two years, to work with several investment banking firms that are actively assisting management and the Board of Directors in identifying and evaluating potential business combinations in Europe and the U.S. Gehl's strategic objectives are twofold: (1) to expand its compact equipment product offerings in U.S. markets; and (2) to enhance its distribution capabilities in Europe and elsewhere. Significant marketing and manufacturing synergies would be created for the Company by gaining access to European manufacturers of compact equipment seeking to expand their presence in North America. 5. Introducing Gehl Company's E-Commerce Initiative - The Company is actively developing a separate, proprietary, web-enabled business to market its own brand of products. Gehl expects the e-commerce business to commence operating by the third quarter of 2001. The Company expects this business to grow significantly in the years ahead. Financial Guidance to the Investment Community - ---------------------------------------------- Gehl Company is forecasting net sales to reach between $272 million and $280 million in 2001, an increase of approximately 5% to 8% over 2000 net sales levels. Diluted earnings per share (EPS) for 2001 is forecast to be in the $1.52 to $1.62 range. In general, the Company does not foresee any significant improvement in the overall economic environment until the second half of 2001, at the earliest. It is anticipated that a general improvement in economic conditions will assist in bolstering the sales of new products introduced in 2001 and second half shipments in general. However, the Company anticipates the full impact of its strategic actions will not be fully realized until 2002, and beyond, due to the anticipated timing of the improvement in the economy (M O R E) Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 8 and the natural time lag associated with implementation of the strategic initiatives described above. In the construction equipment segment, the Company is forecasting 2001 net sales to be between $156 million and $160 million, an increase of approximately 3% to 6% over the net sales levels realized in 2000. The increase is anticipated to occur primarily as the result of new model skid loader shipments, e-commerce initiatives and increased shipments of compact excavators and mini-loaders. Offsetting these developments, the Company expects a decrease in its telescopic handler shipments in similar proportion to the anticipated overall market decline. In the agricultural equipment segment, the Company is forecasting 2001 net sales to be between $116 million and $120 million, an increase of approximately 8% to 12% over the 2000 net sales levels. The increase is anticipated to occur primarily as the result of the new model round baler and skid loader shipments, and an increase in shipments of compact equipment (telescopic handlers, compact excavator and mini-loader products) to rural equipment dealers which serve areas not currently covered by Gehl construction dealers. Consolidated gross profit margin for 2001 is forecasted in the range of 26.1% to 26.6%, compared to the 2000 consolidated gross margin percentage of 26.4%. The primary factors that could adversely affect margin include: 1) anticipated limited price increases as a result of competitive market conditions; 2) a decrease in the percentage of shipments comprised of telescopic handlers, typically a higher gross margin product; 3) increased shipment levels of compact excavators and mini-loaders, which have lower than average gross margins due to the purchased finished goods nature of the product; and 4) reduced production levels at a number of construction equipment manufacturing facilities in 2001 versus 2000. Offsetting these items are anticipated increased agricultural equipment production levels (primarily round balers), and improved efficiencies expected at a number of Company manufacturing facilities. (M O R E) Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 9 Operating expenses are expected to rise slightly, as a percentage of net sales, to the range of 18.0% to 18.4% for 2001. Certain ongoing spending in support of revenue enhancing projects, including e-commerce, distribution and product development, service and parts consolidations, and the implementation of enterprise resource planning (ERP) systems, are expected to continue. In addition, the very competitive market forces in both segments are expected to result in higher requirements for certain sales-related expenses. The Company expects that a higher proportion of dealers and end-users utilizing low retail finance rate programs to be offered in 2001 may result in other expenses increasing by approximately $1 million. The Company's expectations are that the average level of borrowings outstanding under the credit revolver will remain reasonably constant in 2001 as compared with 2000. On a quarterly basis, 2001 will trend differently than 2000, as a result of changing market dynamics, and the expected contributions of new products offered, as well as existing products offered through additional channels of Gehl's distribution network. For further guidance, please refer to the addendum that follows the financial statements, which provides quarterly guidance for 2001 and an initial full year forecast for 2002. Regarding 2002, Gehl Company expects continued economic improvement and continued rewards for the strategic initiatives implemented throughout 2001. Specifically, the Company is expecting: o Improved North American skid loader and telescopic handler markets; o Better European markets for the skid loader product line; o Continued acceptance, and full year impact, of products introduced during 2001; o Continued success of rural equipment dealers and Mustang dealers in selling compact equipment first available to these distribution channels in 2001; (M O R E) Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 10 o Continued growth of the compact excavator market at above average growth rates; o Continued growth in sales of attachments; and o Expanded web-based e-commerce business. As noted in the addendum following the financial statements, the Company expects slightly improved gross margins and a lower percentage of operating expenses to net sales for 2002, which should result in EPS ranging from $2.10 to $2.30 per diluted share. Gehl Company (Nasdaq: GEHL) is a leading manufacturer of equipment used worldwide in construction and agricultural markets. Founded in 1859, the Company is headquartered in West Bend, WI, with manufacturing facilities in West Bend, WI; Lebanon, PA; Madison and Yankton, SD; and Owatonna, MN. Mustang (R) product information is available on the Mustang Manufacturing Website (www.mustangmfg.com). Gehl Company information is available on the Gehl (R) Website (www.gehl.com) or contact Gehl Company, 143 Water Street, West Bend, WI 53095 (telephone: 262/334-9461). The Company intends that certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding the Company's future financial position, business strategy, targets, projected sales, costs, earnings and capital spending, and the plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as the Company "believes," "anticipates," "expects" or "estimates" or words of similar meaning are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control, that could cause actual results to differ materially from those anticipated as of the date of this press release. Factors that could cause such a variance include, but are not limited to, unanticipated changes in general economic and capital market conditions, the Company's ability to implement successfully the strategic initiatives described above, market acceptance of newly introduced products, the cyclical nature of the Company's business, the Company's and its customers' access to credit, (M O R E) Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 11 competitive pricing, product initiatives and other actions taken by competitors, disruptions in production capacity, excess inventory levels, the effect of changes in laws and regulations (including government subsidies and international trade regulations), technological difficulties, changes in environmental laws, the impact of any acquisition effected by the Company, and employee and labor relations. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. In addition, the Company's expectations for fiscal years 2001 and 2002 are based in part on certain assumptions made by the Company, including those relating to commodities prices, which are strongly affected by weather and other factors and can fluctuate significantly, housing starts and other construction activities, which are sensitive to, among other things, interest rates and government spending, and the performance of the U.S. economy generally. The accuracy of these or other assumptions could have a material effect on the Company's ability to achieve its expectations. (TABLES TO FOLLOW) Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 12 GEHL COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data)
For the Fourth Quarter Ended For the Year Ended (unaudited) (audited) ---------------------------------------- ------------------------------------ Dec. 31, 2000 Dec. 31, 1999 Dec. 31, 2000 Dec. 31, 1999 --------------- ------------------ -------------- --------------- NET SALES (1) $ 52,147 $ 64,358 $ 258,118 $ 291,398 Cost of goods sold (1) 39,369 47,464 190,093 210,851 --------------- ------------------ -------------- --------------- GROSS PROFIT 12,778 16,894 68,025 80,547 Selling, general & administrative expenses (1) 11,011 10,023 46,040 45,490 --------------- ------------------ -------------- --------------- INCOME FROM OPERATIONS 1,767 6,871 21,985 35,057 Interest expense (1,272) (740) (4,741) (3,083) Interest income 483 265 1,760 1,555 Other (expense) income, net (562) (493) (4,148) (2,235) --------------- ------------------ -------------- --------------- INCOME BEFORE INCOME TAXES 416 5,903 14,856 31,294 Income tax provision 146 2,095 5,200 11,109 --------------- ------------------ -------------- --------------- NET INCOME $ 270 $ 3,808 $ 9,656 $ 20,185 =============== ================== ============== =============== EARNINGS PER SHARE Diluted $ .05 $ .64 $ 1.72 $ 3.17 Weighted average number of common shares and common stock equivalents 5,412 5,925 5,607 6,359 Basic $ .05 $ .67 $ 1.76 $ 3.29 Weighted average number of common shares 5,343 5,726 5,475 6,126
(1) During the fourth quarter of 2000, the Company adopted the provisions of the Emerging Issues Task Force ("EITF") Issue No. 00-10 "Accounting for Shipping and Handling Fees and Costs". In accordance with the provisions of EITF 00-10, certain shipping and handling fees and costs which the Company had previously recorded on a net basis as a component of selling, general, and administrative expenses will be reflected in net sales and cost of goods sold, as appropriate. As a result of adopting EITF 00-10, the Company has restated previous quarters of 2000 and previous year's financial information to reflect comparable reporting of such shipping and handling fees. Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 13 GEHL COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands - audited)
December 31, 2000 December 31, 1999 -------------------- ---------------------- ASSETS Cash $ 2,590 $ 1,010 Accounts receivable - net 69,546 68,551 Inventories 45,598 35,206 Prepaid income taxes 8,078 8,431 Finance contracts receivable - net 16,549 12,074 Other current assets 636 511 -------------------- ---------------------- Total current assets 142,997 125,783 Property, plant and equipment - net 46,172 37,028 Intangible assets 13,086 15,706 Other assets 20,463 15,643 -------------------- ---------------------- TOTAL ASSETS $ 222,718 $ 194,160 ==================== ====================== LIABILITIES AND SHAREHOLDERS' EQUITY Total current liabilities $ 50,027 $ 56,299 Long-term debt obligations 60,885 31,097 Deferred income taxes 5,096 3,949 Other long-term obligations 3,692 5,391 Total shareholders' equity 103,018 97,424 -------------------- ---------------------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 222,718 $ 194,160 ==================== ======================
Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 14 GEHL COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)
For the Year Ended (audited) ---------------------------------------------------- Dec. 31, 2000 Dec. 31, 1999 -------------------- ---------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 9,656 $ 20,185 Adjustments to reconcile net income to net cash (used for) provided by operating activities: Depreciation 4,885 4,329 Amortization 849 782 Gain on sale of property, plant and equipment (863) (46) Cost of sales of finance contracts 4,990 2,911 Deferred income taxes 121 (1,421) Increase in finance contracts receivable (105,606) (80,834) Proceeds from sales of finance contracts 93,485 74,128 Net changes in remaining working capital items (14,649) 4,930 -------------------- ---------------------- Net cash (used for) provided by operating activities (7,132) 24,964 -------------------- ---------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Property, plant and equipment additions (12,577) (7,281) Other (3,247) (2,601) -------------------- ---------------------- Net cash used for investing activities (15,824) (9,882) -------------------- ---------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from line of credit facility 29,570 2,679 Purchase of treasury stock (5,924) (18,523) Proceeds from issuance of common stock 526 1,070 Other 364 (185) -------------------- ---------------------- Net cash provided by (used for) financing activities 24,536 (14,959) -------------------- ---------------------- Net increase in cash 1,580 123 Cash, beginning of period 1,010 887 -------------------- ---------------------- Cash, end of period $ 2,590 $ 1,010 ==================== ======================
Gehl Company Gehl Company Reports 4th Quarter and Full Year Results February 15, 2001 page 15 Addendum to the Financial Results Gehl Company Guidance to the Investment Community February 15, 2001
2001 Full Year ---------------------------------------------------------------------------- Q1 Q2 Q3 Q4 Full Year 2002 -------------------------------------------------------------------------------------------- Agriculture Net Sales ($ millions) 29.5 - 30.5 31.5 - 32.5 32 - 33 23 - 24 116 - 120 Construction Net Sales ($ millions) 32 - 33 47 - 48 42.5 - 43.5 34.5 - 35.5 156 - 160 -------------------------------------------------------------------------------------------- Total Net Sales ($millions) 61.5 - 63.5 78.5 - 80.5 74.5 - 76.5 57.5 - 59.5 272 - 280 298 - 308 +9.6 - 10.0% Gross Margin (%) 25.8 - 26.3 26.4 - 26.9 26.9 - 27.4 25.0 - 25.5 26.1 - 26.6 26.5 - 27.0 Selling, General & Admin. Expenses (%) 19.9 - 20.1 16.4 - 16.6 16.9 - 17.1 19.8 - 20.0 18.0 - 18.4 17.0 - 17.5 Income from Operations (%) 5.7 - 6.4 10.0 - 10.5 10.0 - 10.5 5.1 - 5.7 8.0 - 8.4 9.0 - 9.4 Diluted EPS $.15 - .21 $.61 - .67 $.59 - .65 $.11 - .17 $1.52 - 1.62 $2.10 - 2.30
Safe Harbor for Guidance Addendum: This table consists solely of forward-looking information intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. This forward-looking information is not a guarantee of future performance and is subject to certain risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control, that could cause actual results to differ materially from those anticipated on the date hereof. Factors that could cause such a variance include, but are not limited to, unanticipated changes in general economic and capital market conditions, the Company's ability to implement successfully its strategic initiatives, market acceptance of newly introduced products, the cyclical nature of the Company's business, the Company's and its customers' access to credit, competitive pricing, product initiatives and other actions taken by competitors, disruptions in production capacity, excess inventory levels, the effect of changes in laws and regulations (including government subsidies and international trade regulations), technological difficulties, changes in environmental laws, the impact of any acquisition effected by the Company, and employee and labor relations. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information. The forward-looking information included in this addendum is only as of the date of this addendum, and the Company undertakes no obligation to publicly update such forward-looking information to reflect subsequent events or circumstances. In addition, the Company's expectations for fiscal years 2001 and 2002 are based in part on certain assumptions made by the Company, including those relating to commodities prices, which are strongly affected by weather and other factors and can fluctuate significantly, housing starts and other construction activities, which are sensitive to, among other things, interest rates and government spending, and the performance of the U.S. economy generally. The accuracy of these or other assumptions could have a material effect on the Company's ability to achieve its expectations. # # # -----END PRIVACY-ENHANCED MESSAGE-----