JLG Jlg Industries

JLG Industries, Inc. (NYSE:JLG) today announced that its 2007 fiscal first-quarter consolidated revenues were $539 million compared to $478 million during the same period last year. Net income for the quarter totaled $40 million, or 37 cents per share, versus $28 million, or 27 cents per share, for the fiscal first-quarter of 2006. Operating income was $62 million, or 11.5 percent of sales, compared to $50 million, or 10.5 percent, during the same period last year. Cash and cash equivalents were $308 million at October 29, 2006 compared to $231 million a year ago. Fiscal first-quarter 2007 net income included $4.1 million ($2.6 million net of tax), or 2 cents per share, of charges related to the proposed merger with a subsidiary of Oshkosh Truck Corporation. �For the fourth consecutive year, we have produced record first-quarter revenues despite recent consolidation in the equipment rental industry which has altered ordering patterns for some of our larger customers. Demand for our products continues to mirror the strength in non-residential construction activity as our order board grew sequentially to $845 million from $749 million at the end of July,� stated Bill Lasky, Chairman of the Board, President and Chief Executive Officer. �In addition, we are now shipping Caterpillar-branded telehandlers to Cat dealers around the world and expect this business to grow during the year as we ramp up to full production under the exclusive 20-year private label Alliance agreement.� �Excluding the $4.1 million of charges related to the proposed merger with a subsidiary of Oshkosh Truck Corporation, our incremental operating margin was 26% reflecting the effect of our ongoing cost reduction initiatives as well as an improved sales mix,� said Jim Woodward, Executive Vice President and Chief Financial Officer. �In addition, a lower effective tax rate contributed to the increase in net income.� Fiscal-Year 2007 Outlook �As a result of our strengthened order board and insights into most of our major customers� annual purchasing plans, we now expect that our fiscal 2007 revenue growth will be toward the upper end of our previously announced range of 20 to 25 percent greater than our 2006 revenue level of $2.3 billion,� Woodward stated. �On that basis, we are forecasting earnings per share to be in a range from $1.82 to $1.92. This revised earnings guidance includes $4.1 million in merger-related expenses incurred during the first quarter, but does not include any other expenses that may be incurred in completing or terminating the merger. Our previous guidance of $1.72 to $1.82 did not assume any merger-related expenses.� This revised outlook is based upon JLG as an independent company under current management and does not reflect any post-closing management decisions or impacts of the pending transaction with Oshkosh Truck Corporation. Special Meeting of Shareholders JLG Industries, Inc. will hold a Special Meeting of Shareholders to consider and vote on a proposal to approve the Agreement and Plan of Merger among the company, Oshkosh Truck Corporation and its subsidiary, whereby JLG will become a wholly owned subsidiary of Oshkosh. JLG has mailed the definitive proxy statement and other related materials to its shareholders of record as of November 3, 2006 in connection with this meeting. The meeting is scheduled for December 4, 2006. Pending this meeting and the related transaction, we have not scheduled a conference call to discuss our first-quarter results. About JLG Industries, Inc. 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 JLG� aerial work platforms; JLG, SkyTrak�, Lull� and Gradall� 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. Forward-Looking Statements 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; (vi) costs of raw materials and energy; and (vii) risks associated with our pending merger, as well as other risks as detailed in the Company's SEC reports, including the report on Form 10-K for the year ended July 31, 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. JLG INDUSTRIES, INC. FINANCIAL DASHBOARD (in thousands, except per share data and as otherwise identified) � Quarter Ended Fiscal Year Quarter Ended Fiscal Year October 29, 2006 Ended July 31, 2006 July 31, 2006 April 30, 2006 January 29, 2006 October 30, 2005 Ended July 31, 2005 REVENUES AND PROFITABILITY Revenues $ 539,310� $ 2,289,396� $ 687,632� $ 629,615� $ 494,426� $ 477,723� $ 1,735,030� Gross profit margin 21.6% 19.4% 19.5% 18.8% 19.4% 19.9% 16.6% EBITDA 75,960� 297,930� 88,234� 90,952� 59,400� 59,344� 154,185� Trailing twelve month EBITDA 314,546� 297,930� 297,930� 280,799� 243,633� 211,344� 154,185� Trailing twelve month EBITDA margin 13.4% 13.0% 13.0% 12.9% 11.9% 11.1% 8.9% Operating income 62,226� 262,984� 78,194� 84,690� 49,734� 50,366� 120,261� Operating profit margin 11.5% 11.5% 11.4% 13.5% 10.1% 10.5% 6.9% Net income margin 7.4% 6.5% 7.0% 7.3% 5.5% 5.8% 3.3% � Reported earnings per diluted share (1) $ 0.37� $ 1.40� $ 0.45� $ 0.43� $ 0.26� $ 0.27� $ 0.60� � 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)) $ -� $ (22,019) $ (9,848) $ (7,951) $ (3,375) $ (845) $ (6,261) Merger related costs (in SA&PD) (4,149) -� -� -� -� -� -� Net expenses on early extinguishment of debt -� (1,939) (492) (873) (574) -� (6,493) Currency effects (in Miscellaneous-net) 1,391� (2,767) 21� (2,847) (672) 731� 5,826� Bad debt charges (in SA&PD) (388) (6,368) (1,289) (234) (1,336) (3,509) (6,977) Inventory charges (in COS) (324) (2,074) (141) 106� (551) (1,488) (4,423) Early vesting incentives (in both COS, SA&PD) -� -� -� -� -� -� (1,658) Other Incentive pay (in both COS, SA&PD) (5,603) (25,938) (9,938) (6,266) (4,888) (4,846) (22,194) Estimated net unrecovered steel cost (in COS) (3) -� (6,005) -� -� -� (6,005) (64,753) Gain related to sale of Gradall excavator product line -� 14,572� -� 14,572� -� -� -� � NET INCOME Strategic Initiatives/Integration (in both COS and SA&PD) -� (13,581) (6,247) (4,789) (2,146) (503) (3,846) Merger related costs (in SA&PD) (2,634) -� -� -� -� -� (3,846) Net expenses on early extinguishment of debt -� (1,196) (312) (526) (365) -� (3,988) Currency effects (in Miscellaneous-net) 883� (1,707) 13� (1,715) (427) 435� 3,578� Bad debt charges (in SA&PD) (246) (3,928) (818) (141) (850) (2,088) (4,285) Inventory charges (in COS) (206) (1,279) (89) 64� (350) (885) (2,717) Early vesting incentives (in both COS, SA&PD) -� -� -� -� -� -� (1,018) Other Incentive pay (in both COS, SA&PD) (3,557) (15,999) (6,304) (3,774) (3,109) (2,883) (13,632) Estimated net unrecovered steel cost (in COS) (3) -� (3,704) -� -� -� (3,573) (39,771) Gain related to sale of Gradall excavator product line -� 8,988� -� 8,777� -� -� -� � EARNINGS PER SHARE (1) Strategic Initiatives/Integration (in both COS and SA&PD) -� (0.13) (0.06) (0.04) (0.02) -� (0.04) Merger related costs (in SA&PD) (0.02) -� -� -� -� -� (0.04) Net expenses on early extinguishment of debt -� (0.01) -� -� -� -� (0.04) Currency effects (in Miscellaneous-net) 0.01� (0.02) -� (0.02) -� -� 0.04� Bad debt charges (in SA&PD) -� (0.04) (0.01) -� (0.01) (0.02) (0.04) Inventory charges (in COS) -� (0.01) -� -� -� (0.01) (0.03) Early vesting incentives (in both COS, SA&PD) -� -� -� -� -� -� (0.01) Other Incentive pay (in both COS, SA&PD) (0.03) (0.15) (0.06) (0.04) (0.03) (0.03) (0.14) Estimated net unrecovered steel cost (in COS) (3) -� (0.03) -� -� -� (0.03) (0.42) Gain related to sale of Gradall excavator product line -� 0.08� -� 0.08� -� -� -� � BALANCE SHEET & LIQUIDITY MEASURES Cash & cash equivalents $ 307,947� $ 328,096� $ 328,096� $ 304,895� $ 183,344� $ 230,947� $ 223,597� Trade accounts and finance receivables, net 401,283� 445,631� 445,631� 393,966� 379,813� 379,393� 419,866� Inventories 326,406� 212,864� 212,864� 216,901� 227,957� 218,881� 169,097� Total balance sheet debt 231,006� 239,581� 239,581� 252,047� 273,721� 278,877� 289,351� Limited recourse debt from finance receivables monetizations 19,350� 23,719� 23,719� 28,516� 45,318� 55,921� 63,658� Net debt (4) (96,291) (112,234) (112,234) (81,364) 45,059� (7,991) 2,096� Net debt (4) to total capitalization -� -� -� -� 7% -� -� Maximum loss exposure under loss pool agreements related to finance receivable monetizations 6,617� 8,818� 8,818� 8,818� 11,346� 11,855� 22,160� Equity 717,302� 675,432� 675,432� 625,736� 566,870� 507,140� 478,592� Working capital 650,007� 607,460� 607,460� 575,593� 523,417� 505,787� 489,187� Depreciation and amortization 7,106� 28,551� 6,410� 7,701� 7,907� 6,533� 28,899� Capital expenditures, net of retirements (10,756) 32,241� 15,837� 9,622� 3,653� 3,129� 13,435� Free cash flow (5) (15,943) 114,330� 30,870� 126,423� (53,050) 10,087� 267,457� � FINANCIAL RATIOS Days sales outstanding 57.3� 51.2� 51.2� 46.8� 62.3� 62.7� 57.1� Days payables outstanding 50.5� 44.2� 44.2� 45.2� 40.6� 46.4� 50.5� Inventory turnover (annualized) 7.2� 7.6� 7.6� 7.5� 7.6� 7.8� 7.6� � (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. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands, except per share data) (Quarterly data is unaudited) � Quarter Ended Fiscal Year Quarter Ended Fiscal Year October 29, 2006 Ended July 31, 2006 July 31, 2006 April 30, 2006 January 29, 2006 October 30, 2005 Ended July 31, 2005 Revenues Net sales $ 534,391� $ 2,268,322� $ 682,789� $ 624,686� $ 488,411� $ 472,436� $ 1,713,782� Financial products 2,288� 11,093� 2,647� 2,216� 3,256� 2,974� 11,915� Rentals 2,631� 9,981� 2,196� 2,713� 2,759� 2,313� 9,333� 539,310� 2,289,396� 687,632� 629,615� 494,426� 477,723� 1,735,030� Cost of sales 422,558� 1,846,371� 553,394� 511,552� 398,566� 382,859� 1,447,785� Gross profit 116,752� 443,025� 134,238� 118,063� 95,860� 94,864� 287,245� Gross profit margin 21.6% 19.4% 19.5% 18.8% 19.4% 19.9% 16.6% Selling and administrative expenses 42,721� 164,362� 45,975� 41,025� 39,301� 38,061� 142,383� Selling & administrative % 7.9% 7.2% 6.7% 6.5% 7.9% 8.0% 8.2% Product development expenses 7,656� 30,251� 10,069� 6,920� 6,825� 6,437� 24,601� Product development % 1.4% 1.3% 1.5% 1.1% 1.4% 1.3% 1.4% Merger related costs 4,149� -� -� -� -� -� -� Gain related to sale of Gradall excavator product line -� (14,572) -� (14,572) -� -� -� Income from operations 62,226� 262,984� 78,194� 84,690� 49,734� 50,366� 120,261� Operating profit margin 11.5% 11.5% 11.4% 13.5% 10.1% 10.5% 6.9% Other income (deductions): Interest expense (net of interest income) (1,403) (17,710) (2,526) (4,030) (6,688) (4,466) (28,609) Miscellaneous, net 2,147� (3,166) (195) (3,974) 69� 934� 1,436� Income before taxes 62,970� 242,108� 75,473� 76,686� 43,115� 46,834� 93,088� Income tax provision 22,990� 92,764� 27,602� 30,499� 15,695� 18,968� 35,915� Net income $ 39,980� $ 149,344� $ 47,871� $ 46,187� $ 27,420� $ 27,866� $ 57,173� Return on revenues 7.4% 6.5% 7.0% 7.3% 5.5% 5.8% 3.3% � Earnings per common share $ .38� $ 1.43� $ .45� $ .44� $ .26� $ .27� $ .61� � Earnings per common share - assuming dilution $ .37� $ 1.40� $ .45� $ .43� $ .26� $ .27� $ .60� � Cash Dividends per share $ .0050� $ .0150� $ .0050� $ .0050� $ .0025� $ .0025� $ .0100� � Average basic shares outstanding 105,591� 104,294� 105,465� 105,088� 104,042� 102,424� 93,058� � Average diluted shares outstanding 107,174� 106,518� 107,199� 107,232� 106,374� 105,112� 95,586� JLG INDUSTRIES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands, except per share data) (Quarterly data is unaudited) � October 29, July 31, April 30, January 29, October 30, July 31, 2006� 2006� 2006� 2006� 2005� 2005� ASSETS Current assets Cash and cash equivalents $ 307,947� $ 328,096� $ 304,895� $ 183,344� $ 230,947� $ 223,597� Trade accounts and finance receivables, net 401,283� 445,631� 393,966� 379,813� 379,393� 419,866� Inventories 326,406� 212,864� 216,901� 227,957� 218,881� 169,097� Assets held for sale -� -� -� 49,941� -� -� Other current assets 39,917� 47,613� 26,595� 42,715� 48,417� 56,739� Total current assets 1,075,553� 1,034,204� 942,357� 883,770� 877,638� 869,299� Property, plant and equipment, net 106,033� 98,345� 87,447� 82,746� 84,879� 85,855� Equipment held for rental, net 25,396� 21,477� 21,934� 36,684� 38,401� 22,570� Finance receivables, less current portion 23,485� 29,193� 29,472� 26,500� 29,688� 30,354� Pledged finance receivables, less current portion 4,715� 7,668� 11,923� 18,623� 26,589� 33,649� Goodwill 57,382� 57,388� 60,513� 60,419� 61,598� 61,641� Intangible assets, net 73,190� 74,142� 74,557� 75,371� 31,795� 32,086� Other assets 75,707� 74,872� 72,197� 68,379� 64,675� 68,143� $ 1,441,461� $ 1,397,289� $ 1,300,400� $ 1,252,492� $ 1,215,263� $ 1,203,597� LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term debt and current portion of long-term debt $ 3,496� $ 8,484� $ 8,447� $ 6,515� $ 1,486� $ 1,496� Current portion of limited recourse debt from finance receivables monetizations 14,590� 16,001� 16,531� 26,558� 29,045� 29,642� Accounts payable 271,190� 233,746� 221,342� 187,591� 200,281� 200,323� Accrued expenses 136,270� 168,513� 120,444� 139,689� 141,039� 148,651� Total current liabilities 425,546� 426,744� 366,764� 360,353� 371,851� 380,112� Long-term debt, less current portion 208,160� 207,378� 215,084� 221,888� 221,470� 224,197� Limited recourse debt from finance receivables monetizations, less current portion 4,760� 7,718� 11,985� 18,760� 26,876� 34,016� Accrued post-retirement benefits 25,748� 25,748� 25,193� 31,797� 31,455� 31,113� Other long-term liabilities 21,891� 19,984� 23,152� 22,117� 28,464� 27,233� Provisions for contingencies 38,054� 34,285� 32,486� 30,707� 28,007� 28,334� Shareholders' equity Capital stock: Authorized shares: 200,000 at $.20 par value Issued shares: 106,754; fiscal 2006 - 106,751; fiscal 2005 - 103,290 21,351� 21,350� 21,268� 21,100� 20,666� 20,658� Additional paid-in capital 212,344� 209,290� 206,710� 193,021� 165,119� 170,367� Retained earnings 497,722� 458,276� 410,937� 365,280� 338,124� 310,516� Unearned compensation -� -� -� -� -� (7,397) Accumulated other comprehensive loss (14,115) (13,484) (13,179) (12,531) (16,769) (15,552) Total shareholders' equity 717,302� 675,432� 625,736� 566,870� 507,140� 478,592� $ 1,441,461� $ 1,397,289� $ 1,300,400� $ 1,252,492� $ 1,215,263� $ 1,203,597� JLG INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW (in thousands) (Quarterly data is unaudited) � Quarter Ended Fiscal Year Quarter Ended Fiscal Year October 29, 2006 Ended July 31, 2006 July 31, 2006 April 30, 2006 January 29, 2006 October 30, 2005 Ended July 31, 2005 � OPERATIONS Net income (loss) $ 39,980� $ 149,344� $ 47,871� $ 46,187� $ 27,420� $ 27,866� $ 57,173� Adjustments to reconcile net income (loss) to cash flow from operating activities: Gain related to sale of Gradall excavator product line -� (14,572) -� (14,572) -� -� -� (Gain) loss on sale of property, plant and equipment (1) (383) (359) 5� 57� (86) 948� Gain on sale of equipment held for rental (42) (13,745) (506) (7,555) (5,612) (72) (11,711) Non-cash charges and credits: Depreciation and amortization 7,106� 28,551� 6,410� 7,701� 7,907� 6,533� 28,899� Other 20,012� 24,377� 971� 11,238� 5,137� 7,031� 6,986� Changes in selected working capital items: Accounts receivable 49,542� (45,350) (58,188) (13,080) (13,268) 39,186� (25,948) Inventories (113,624) (64,712) 5,470� 10,368� (30,523) (50,027) (15,268) Accounts payable 37,443� 42,312� 12,405� 35,610� (5,669) (34) 60,423� Other operating assets and liabilities (35,652) 33,484� 29,722� 9,160� (6,722) 1,324� 30,623� Changes in finance receivables 752� (2,315) 3,394� (3,645) (3,415) 1,351� 1,877� Changes in pledged finance receivables (54) (627) (65) (133) (233) (196) 36� Changes in other assets and liabilities (1,163) (17,613) 1,035� (11,506) (3,720) (3,422) 8,374� Cash flow from operating activities 4,299� 118,751� 48,160� 69,778� (28,641) 29,454� 142,412� � INVESTMENTS Purchases of property, plant and equipment (10,781) (32,597) (16,065) (9,643) (3,744) (3,145) (15,443) Proceeds from the sale of property, plant and equipment 26� 739� 587� 16� 34� 102� 1,060� Purchases of equipment held for rental (7,058) (43,527) (4,246) (11,890) (9,270) (18,121) (31,249) Proceeds from the sale of equipment held for rental 90� 50,552� 3,413� 32,396� 14,305� 438� 35,065� Proceeds from the sale of Gradall excavator product line -� 32,992� 576� 32,416� -� -� -� Cash portion of acquisitions -� (47,093) -� (58) (47,035) -� (105) Other (48) 150� (204) 422� (40) (28) 366� Cash flow used for investing activities (17,771) (38,784) (15,939) 43,659� (45,750) (20,754) (10,306) � FINANCING Net issuance (repayment) of short-term debt (5,001) 52� 14� 26� 23� (11) (6) Issuance of long-term debt -� 10,000� -� 10,000� -� -� 156,018� Repayment of long-term debt (575) (21,455) (8,584) (12,678) (96) (97) (232,666) Payment of dividends (534) (1,584) (532) (530) (264) (258) (925) Net proceeds from issuance of common stock -� -� -� -� -� -� 119,421� Cash proceeds received from the exercise of stock options 75� 18,494� 493� 4,510� 13,327� 164� 19,826� Excess tax benefits from stock-based compensation 42� 20,384� -� 7,323� 13,017� 44� -� Cash flow from financing activities (5,993) 25,891� (8,609) 8,651� 26,007� (158) 61,668� � CURRENCY ADJUSTMENTS Effect of exchange rate changes on cash (684) (1,359) (411) (537) 781� (1,192) (7,833) � CASH AND CASH EQUIVALENTS Net change in cash and cash equivalents (20,149) 104,499� 23,201� 121,551� (47,603) 7,350� 185,941� Beginning balance 328,096� 223,597� 304,895� 183,344� 230,947� 223,597� 37,656� � Ending balance $ 307,947� $ 328,096� $ 328,096� $ 304,895� $ 183,344� $ 230,947� $ 223,597� JLG INDUSTRIES, INC. CONSOLIDATED SELECTED SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) (Quarterly data is unaudited) � Quarter Ended Fiscal Year Quarter Ended Fiscal Year October 29, 2006 Ended July 31, 2006 July 31, 2006 April 30, 2006 January 29, 2006 October 30, 2005 Ended July 31, 2005 SEGMENT INFORMATION REVENUES: North American Distribution $ 370,962� $ 1,704,030� $ 509,653� $ 462,772� $ 369,725� $ 361,880� $ 1,329,682� European Distribution 118,915� 407,143� 137,233� 124,521� 83,062� 62,327� 261,602� Rest of World Distribution 47,094� 166,820� 37,985� 40,051� 38,329� 50,455� 129,995� Access Financial Solutions 2,339� 11,403� 2,761� 2,271� 3,310� 3,061� 13,751� $ 539,310� $ 2,289,396� $ 687,632� $ 629,615� $ 494,426� $ 477,723� $ 1,735,030� � SEGMENT PROFIT (LOSS): North American Distribution $ 55,135� $ 254,167� $ 79,554� $ 75,997� $ 47,903� $ 50,713� $ 114,255� European Distribution 19,367� 38,969� 14,082� 16,032� 6,659� 2,196� 21,489� Rest of World Distribution 10,848� 39,411� 7,966� 8,304� 9,001� 14,140� 32,475� Access Financial Solutions 425� 4,937� 1,544� 1,139� 1,166� 1,088� 4,420� Corporate expense (23,936) (77,585) (25,419) (17,443) (15,891) (18,832) (58,774) Segment profit 61,839� 259,899� 77,727� 84,029� 48,838� 49,305� 113,865� Add: AFS' interest expense 387� 3,085� 467� 661� 896� 1,061� 6,396� Operating income $ 62,226� $ 262,984� $ 78,194� $ 84,690� $ 49,734� $ 50,366� $ 120,261� � PRODUCT GROUP REVENUES Aerial work platforms $ 299,388� $ 1,159,778� $ 360,367� $ 320,827� $ 234,710� $ 243,874� $ 888,073� Telehandlers 164,429� 776,001� 254,546� 202,637� 160,715� 158,103� 511,766� Excavators -� 26,798� -� 865� 16,902� 9,031� 61,562� After-sales service and support, including parts sales, and used and reconditioned equipment sales 70,574� 305,745� 67,876� 100,357� 76,084� 61,428� 252,381� Financial products 2,288� 11,093� 2,647� 2,216� 3,256� 2,974� 11,915� Rentals 2,631� 9,981� 2,196� 2,713� 2,759� 2,313� 9,333� $ 539,310� $ 2,289,396� $ 687,632� $ 629,615� $ 494,426� $ 477,723� $ 1,735,030� � GEOGRAPHIC REVENUES United States $ 364,914� $ 1,678,674� $ 500,788� $ 456,630� $ 366,343� $ 354,913� $ 1,311,450� Europe 119,344� 408,513� 138,010� 124,621� 83,349� 62,533� 264,032� Other international 55,052� 202,209� 48,834� 48,364� 44,734� 60,277� 159,548� $ 539,310� $ 2,289,396� $ 687,632� $ 629,615� $ 494,426� $ 477,723� $ 1,735,030� JLG INDUSTRIES, INC. EBITDA QUARTERLY PERIODS (in thousands) � October 29, July 31, April 30, January 29, October 30, July 31, 2006� 2006� 2006� 2006� 2005� 2005� Net income $ 39,980� $ 47,871� $ 46,187� $ 27,420� $ 27,866� $35,696� Interest expense 5,884� 6,351� 6,565� 8,378� 5,977� 6,326� Income tax provision 22,990� 27,602� 30,499� 15,695� 18,968� 21,716� Depreciation and amortization 7,106� 6,410� 7,701� 7,907� 6,533� 7,365� EBITDA $ 75,960� $ 88,234� $ 90,952� $ 59,400� $ 59,344� $71,103� � 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. EBITDA AND EBITDA MARGINS TRAILING TWELVE MONTH PERIODS (in thousands) � October 29, July 31, April 30, January 29, October 30, July 31, 2006� 2006� 2006� 2006� 2005� 2005� Net income $161,458� $149,344� $ 137,169� $ 113,704� $ 93,768� $57,173� Interest expense 27,178� 27,271� 27,246� 29,235� 29,179� 32,198� Income tax provision 96,786� 92,764� 86,878� 71,401� 60,053� 35,915� Depreciation and amortization 29,124� 28,551� 29,506� 29,293� 28,344� 28,899� EBITDA $314,546� $297,930� $ 280,799� $ 243,633� $ 211,344� $154,185� � � Revenues $2,350,983� $2,289,396� $ 2,171,343� $ 2,047,084� $ 1,906,092� $1,735,030� � EBITDA Margin 13.4% 13.0% 12.9% 11.9% 11.1% 8.9% � 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. NET DEBT (in thousands) � October 29, July 31, April 30, January 29, October 30, July 31, 2006� 2006� 2006� 2006� 2005� 2005� Revolving credit facilities $ -� $ -� $ -� $ -� $ -� $ -� Cash management facilities -� -� -� -� -� -� $125 million senior notes 89,545� 89,545� 97,545� 109,975� 109,975� 109,975� $175 million senior subordinated notes 113,750� 113,750� 113,750� 113,750� 113,750� 113,750� Miscellaneous debt 13,311� 18,886� 19,455� 9,678� 4,751� 4,859� Fair value of interest rate swaps (7,419) (8,898) (9,908) (7,799) (8,428) (5,909) Gain on terminated interest rate swap 2,469� 2,579� 2,689� 2,799� 2,908� 3,018� Bank debt and notes 211,656� 215,862� 223,531� 228,403� 222,956� 225,693� Limited recourse debt from finance receivables monetizations * 19,350� 23,719� 28,516� 45,318� 55,921� 63,658� Total balance sheet debt 231,006� 239,581� 252,047� 273,721� 278,877� 289,351� Less: cash and cash equivalents 307,947� 328,096� 304,895� 183,344� 230,947� 223,597� Less: limited recourse debt from finance receivables monetizations 19,350� 23,719� 28,516� 45,318� 55,921� 63,658� Net debt $ (96,291) $ (112,234) $ (81,364) $ 45,059� $ (7,991) $2,096� � Shareholders' Equity $717,302� $675,432� $ 625,736� $ 566,870� $ 507,140� $478,592� � Net Debt-to-Net Debt plus Shareholders' Equity -� -� -� 7% -� -� � Total Balance Sheet Debt-to-Total Balance Sheet Debt plus Shareholders' Equity 24% 26% 29% 33% 35% 38% � * Maximum loss exposure under loss pool agreements related to finance receivable monetizations $6,617� $8,818� $ 8,818� $ 11,346� $ 11,855� $22,160� � 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. FREE CASH FLOW (in thousands) � Quarter Ended Fiscal Year Ended Quarter Ended Fiscal Year Ended October 29, July 31, July 31, April 30, January 29, October 30, July 31, 2006� 2006� 2006� 2006� 2006� 2005� 2005� Net income $ 39,980� $149,344� $ 47,871� $ 46,187� $ 27,420� $ 27,866� $57,173� Adjustments to reconcile net income to cash flow from operating activities: Non-cash items 27,075� 24,228� 6,516� (3,183) 7,489� 13,406� 25,122� Accounts receivable 49,542� (45,350) (58,188) (13,080) (13,268) 39,186� (25,948) Inventories (113,624) (64,712) 5,470� 10,368� (30,523) (50,027) (15,268) Other current assets (13,716) 17,653� (7,860) 11,633� 4,345� 9,535� (12,553) Accounts payable 37,443� 42,312� 12,405� 35,610� (5,669) (34) 60,423� Accrued expenses (21,936) 15,831� 37,582� (2,473) (11,067) (8,211) 43,176� Finance receivables 752� (2,315) 3,394� (3,645) (3,415) 1,351� 1,877� Other cash from operations (1,163) (17,613) 1,035� (11,506) (3,720) (3,422) 8,374� Purchases of property, plant and equipment (10,781) (32,597) (16,065) (9,643) (3,744) (3,145) (15,443) Proceeds from the sale of property, plant and equipment 26� 739� 587� 16� 34� 102� 1,060� Purchases of equipment held for rental (7,058) (43,527) (4,246) (11,890) (9,270) (18,121) (31,249) Proceeds from the sale of equipment held for rental 90� 50,552� 3,413� 32,396� 14,305� 438� 35,065� Proceeds from the sale of Gradall excavator product line -� 32,992� 576� 32,416� -� -� -� Cash portion of acquisitions -� (47,093) -� (58) (47,035) -� (105) Other cash from investments (48) 150� (204) 422� (40) (28) 366� Payment of dividends (534) (1,584) (532) (530) (264) (258) (925) Net proceeds from issuance of common stock -� -� -� -� -� -� 119,421� Cash proceeds received from the exercise of stock options 75� 18,494� 493� 4,510� 13,327� 164� 19,826� Excess tax benefits from stock-based compensation 42� 20,384� -� 7,323� 13,017� 44� -� Effect of exchange rate changes on cash (684) (1,359) (411) (537) 781� (1,192) (7,833) Seller financing -� (5,000) -� -� (5,000) -� -� Other (1) (1,424) 2,801� (966) 2,087� (753) 2,433� 4,898� Free Cash Flow $ (15,943) $114,330� $ 30,870� $ 126,423� $ (53,050) $ 10,087� $267,457� � (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, cash proceeds received from the exercise of stock options, excess tax benefits from stock-based compensation 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. STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) � CONSOLIDATED EQUIPMENT OPERATIONS FINANCIAL SERVICES � � � JLG Industries, Inc. and Consolidated Subsidiaries JLG Industries, Inc. with Access Financial Solutions on the Equity Basis Access Financial Solutions Three Months Ended Three Months Ended Three Months Ended October 29, October 30, October 29, October 30, October 29, October 30, 2006� 2005� 2006� 2005� 2006� 2005� Revenues Net sales $ 534,391� $ 472,436� $ 534,391� $ 472,436� $ -� $ -� Financial products 2,288� 2,974� -� -� 2,288� 2,974� Rentals 2,631� 2,313� 2,580� 2,226� 51� 87� 539,310� 477,723� 536,971� 474,662� 2,339� 3,061� Cost of sales 422,558� 382,859� 422,487� 382,793� 71� 66� Gross profit 116,752� 94,864� 114,484� 91,869� 2,268� 2,995� Selling and administrative expenses 42,721� 38,061� 41,265� 37,215� 1,456� 846� Product development expenses 7,656� 6,437� 7,656� 6,437� -� -� Merger related costs 4,149� -� 4,149� -� -� -� Income from operations 62,226� 50,366� 61,414� 48,217� 812� 2,149� Other income (deductions): Interest expense, net of interest income (1,403) (4,466) (1,016) (3,405) (387) (1,061) Miscellaneous, net 2,147� 934� 2,147� 934� -� -� Income before taxes 62,970� 46,834� 62,545� 45,746� 425� 1,088� Income tax provision 22,990� 18,968� 22,835� 18,527� 155� 441� Equity in income of Access Financial Solutions -� -� 270� 647� -� -� Net income $ 39,980� $ 27,866� $ 39,980� $ 27,866� $ 270� $ 647� � Earnings per common share $ .38� $ .27� � Earnings per common share - assuming dilution $ .37� $ .27� � Cash dividends per share $ .005� $ .0025� � Weighted average shares outstanding 105,591� 102,424� � Weighted average shares outstanding - assuming dilution 107,174� 105,112� JLG INDUSTRIES, INC. BALANCE SHEETS (in thousands, except per share data) (unaudited) CONSOLIDATED EQUIPMENT OPERATIONS FINANCIAL SERVICES � � JLG Industries, Inc. and Consolidated Subsidiaries JLG Industries, Inc. with Access Financial Solutions on the Equity Basis Access Financial Solutions October 29, July 31, October 29, July 31, October 29, July 31, 2006� 2006� 2006� 2006� 2006� 2006� ASSETS Current assets Cash and cash equivalents $ 307,947� $ 328,096� $ 307,947� $ 328,096� $ -� $ -� Trade accounts and finance receivables - net 401,283� 445,631� 358,271� 405,003� 43,012� 40,628� Inventories 326,406� 212,864� 326,406� 212,864� -� -� Other current assets 39,917� 47,613� 39,917� 47,613� -� -� Total current assets 1,075,553� 1,034,204� 1,032,541� 993,576� 43,012� 40,628� Property, plant and equipment - net 106,033� 98,345� 105,957� 98,253� 76� 92� Equipment held for rental - net 25,396� 21,477� 25,347� 21,384� 49� 93� Finance receivables, less current portion 23,485� 29,193� -� -� 23,485� 29,193� Pledged receivables, less current portion 4,715� 7,668� -� -� 4,715� 7,668� Goodwill 57,382� 57,388� 57,382� 57,388� -� -� Intangible assets - net 73,190� 74,142� 73,190� 74,142� -� -� Investment in Access Financial Solutions -� -� 43,800� 43,530� -� -� Receivable from Access Financial Solutions -� -� 5,262� 8,403� -� -� Other assets 75,707� 74,872� 75,567� 74,899� 140� (27) $ 1,441,461� $ 1,397,289� $ 1,419,046� $ 1,371,575� $ 71,477� $ 77,647� � LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term debt and current portion of long-term debt $ 3,496� $ 8,484� $ 3,496� $ 8,484� $ -� $ -� Current portion of limited recourse debt from finance receivables monetizations 14,590� 16,001� -� -� 14,590� 16,001� Accounts payable 271,190� 233,746� 271,190� 233,746� -� -� Accrued expenses 136,270� 168,513� 136,021� 168,458� 249� 55� Total current liabilities 425,546� 426,744� 410,707� 410,688� 14,839� 16,056� Long-term debt, less current portion 208,160� 207,378� 208,160� 207,378� -� -� Limited recourse debt from finance receivables monetizations, less current portion 4,760� 7,718� -� -� 4,760� 7,718� Payable to JLG Industries, Inc. -� -� -� -� 5,262� 8,403� Accrued post-retirement benefits 25,748� 25,748� 25,748� 25,748� -� -� Other long-term liabilities 21,891� 19,984� 21,891� 19,984� -� -� Provisions for contingencies 38,054� 34,285� 35,238� 32,345� 2,816� 1,940� Shareholders� equity Capital stock: Authorized shares: 200,000 at $.20 par value Issued and outstanding shares: 106,754 shares; fiscal 2006 � 106,751 shares 21,351� 21,350� 21,351� 21,350� 30,000� 30,000� Additional paid-in capital 212,344� 209,290� 212,344� 209,290� -� -� Retained earnings 497,722� 458,276� 497,722� 458,276� 13,800� 13,530� Accumulated other comprehensive loss (14,115) (13,484) (14,115) (13,484) -� -� Total shareholders� equity 717,302� 675,432� 717,302� 675,432� 43,800� 43,530� $ 1,441,461� $ 1,397,289� $ 1,419,046� $ 1,371,575� $ 71,477� $ 77,647� JLG INDUSTRIES, INC. STATEMENTS OF CASH FLOWS (in thousands) (unaudited) � CONSOLIDATED EQUIPMENT OPERATIONS FINANCIAL SERVICES � � JLG Industries, Inc. and Consolidated Subsidiaries JLG Industries, Inc. with Access Financial Solutions on the Equity Basis Access Financial Solutions Three Months Ended Three Months Ended Three Months Ended October 29, October 30, October 29, October 30, October 29, October 30, 2006� 2005� 2006� 2005� 2006� 2005� Operations Net income $ 39,980� $ 27,866� $ 39,980� $ 27,866� $ 270� $ 647� Adjustments to reconcile net income to cash flow from operating activities: (Gain) loss on sale of property, plant and equipment (1) (86) (1) (86) -� -� (Gain) loss on sale of equipment held for rental (42) (72) (42) (72) -� -� Non-cash charges and credits: Depreciation and amortization 7,106� 6,533� 7,046� 6,451� 60� 82� Other 20,012� 7,031� 19,215� 6,733� 797� 298� Changes in selected working capital items: Accounts receivable 49,542� 39,186� 48,264� 48,344� 1,278� (9,158) Inventories (113,624) (50,027) (113,624) (50,027) -� -� Accounts payable 37,443� (34) 37,443� (34) -� -� Other operating assets and liabilities (35,652) 1,324� (35,846) 1,285� 194� 39� Changes in finance receivables 752� 1,351� -� -� 752� 1,351� Changes in pledged finance receivables (54) (196) -� -� (54) (196) Changes in other assets and liabilities (1,163) (3,422) (1,009) (3,395) (154) (27) Cash flow from operating activities 4,299� 29,454� 1,426� 37,065� 3,143� (6,964) � Investments Purchases of property, plant and equipment (10,781) (3,145) (10,781) (3,145) -� -� Proceeds from the sale of property, plant and equipment 26� 102� 26� 102� -� -� Purchases of equipment held for rental (7,058) (18,121) (7,058) (18,121) -� -� Proceeds from the sale of equipment held for rental 90� 438� 90� 438� -� -� Investment in income of Access Financial Solutions -� -� (270) (647) -� -� Other (48) (28) (48) (28) -� -� Cash flow used for investing activities (17,771) (20,754) (18,041) (21,401) -� -� � Financing Net decrease in short-term debt (5,001) (11) (5,001) (11) -� -� Repayment of long-term debt (575) (97) (575) (97) -� -� Change in receivable from Access Financial Solutions -� -� 3,141� (6,965) -� -� Change in payable to JLG Industries, Inc. -� -� -� -� (3,141) 6,965� Payment of dividends (534) (258) (534) (258) -� -� Cash proceeds received from the exercise of stock options 75� 164� 75� 164� -� -� Excess tax benefits from stock-based compensation 42� 44� 42� 44� -� -� Cash flow from financing activities (5,993) (158) (2,852) (7,123) (3,141) 6,965� � Currency Adjustments Effect of exchange rate changes on cash (684) (1,192) (682) (1,191) (2) (1) � Cash and Cash Equivalents Net change in cash and cash equivalents (20,149) 7,350� (20,149) 7,350� -� -� Beginning balance 328,096� 223,597� 328,096� 223,597� -� -� Ending balance $ 307,947� $ 230,947� $ 307,947� $ 230,947� $ -� $ -� JLG Industries, Inc. (NYSE:JLG) today announced that its 2007 fiscal first-quarter consolidated revenues were $539 million compared to $478 million during the same period last year. Net income for the quarter totaled $40 million, or 37 cents per share, versus $28 million, or 27 cents per share, for the fiscal first-quarter of 2006. Operating income was $62 million, or 11.5 percent of sales, compared to $50 million, or 10.5 percent, during the same period last year. Cash and cash equivalents were $308 million at October 29, 2006 compared to $231 million a year ago. Fiscal first-quarter 2007 net income included $4.1 million ($2.6 million net of tax), or 2 cents per share, of charges related to the proposed merger with a subsidiary of Oshkosh Truck Corporation. "For the fourth consecutive year, we have produced record first-quarter revenues despite recent consolidation in the equipment rental industry which has altered ordering patterns for some of our larger customers. Demand for our products continues to mirror the strength in non-residential construction activity as our order board grew sequentially to $845 million from $749 million at the end of July," stated Bill Lasky, Chairman of the Board, President and Chief Executive Officer. "In addition, we are now shipping Caterpillar-branded telehandlers to Cat dealers around the world and expect this business to grow during the year as we ramp up to full production under the exclusive 20-year private label Alliance agreement." "Excluding the $4.1 million of charges related to the proposed merger with a subsidiary of Oshkosh Truck Corporation, our incremental operating margin was 26% reflecting the effect of our ongoing cost reduction initiatives as well as an improved sales mix," said Jim Woodward, Executive Vice President and Chief Financial Officer. "In addition, a lower effective tax rate contributed to the increase in net income." Fiscal-Year 2007 Outlook "As a result of our strengthened order board and insights into most of our major customers' annual purchasing plans, we now expect that our fiscal 2007 revenue growth will be toward the upper end of our previously announced range of 20 to 25 percent greater than our 2006 revenue level of $2.3 billion," Woodward stated. "On that basis, we are forecasting earnings per share to be in a range from $1.82 to $1.92. This revised earnings guidance includes $4.1 million in merger-related expenses incurred during the first quarter, but does not include any other expenses that may be incurred in completing or terminating the merger. Our previous guidance of $1.72 to $1.82 did not assume any merger-related expenses." This revised outlook is based upon JLG as an independent company under current management and does not reflect any post-closing management decisions or impacts of the pending transaction with Oshkosh Truck Corporation. Special Meeting of Shareholders JLG Industries, Inc. will hold a Special Meeting of Shareholders to consider and vote on a proposal to approve the Agreement and Plan of Merger among the company, Oshkosh Truck Corporation and its subsidiary, whereby JLG will become a wholly owned subsidiary of Oshkosh. JLG has mailed the definitive proxy statement and other related materials to its shareholders of record as of November 3, 2006 in connection with this meeting. The meeting is scheduled for December 4, 2006. Pending this meeting and the related transaction, we have not scheduled a conference call to discuss our first-quarter results. About JLG Industries, Inc. 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 JLG(R) aerial work platforms; JLG, SkyTrak(R), Lull(R) and Gradall(R) 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. Forward-Looking Statements 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; (vi) costs of raw materials and energy; and (vii) risks associated with our pending merger, as well as other risks as detailed in the Company's SEC reports, including the report on Form 10-K for the year ended July 31, 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. -0- *T JLG INDUSTRIES, INC. FINANCIAL DASHBOARD (in thousands, except per share data and as otherwise identified) Quarter Quarter Ended Ended Fiscal Year October Ended July July 31, April 30, 29, 2006 31, 2006 2006 2006 --------- ----------- --------- --------- REVENUES AND PROFITABILITY Revenues $539,310 $2,289,396 $687,632 $629,615 Gross profit margin 21.6% 19.4% 19.5% 18.8% EBITDA 75,960 297,930 88,234 90,952 -------------------------- Trailing twelve month EBITDA 314,546 297,930 297,930 280,799 -------------------------- Trailing twelve month EBITDA margin 13.4% 13.0% 13.0% 12.9% -------------------------- Operating income 62,226 262,984 78,194 84,690 Operating profit margin 11.5% 11.5% 11.4% 13.5% Net income margin 7.4% 6.5% 7.0% 7.3% Reported earnings per diluted share (1) $0.37 $1.40 $0.45 $0.43 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)) $- $(22,019) $(9,848) $(7,951) Merger related costs (in SA&PD) (4,149) - - - Net expenses on early extinguishment of debt - (1,939) (492) (873) Currency effects (in Miscellaneous-net) 1,391 (2,767) 21 (2,847) Bad debt charges (in SA&PD) (388) (6,368) (1,289) (234) Inventory charges (in COS) (324) (2,074) (141) 106 Early vesting incentives (in both COS, SA&PD) - - - - Other Incentive pay (in both COS, SA&PD) (5,603) (25,938) (9,938) (6,266) Estimated net unrecovered steel cost (in COS) (3) - (6,005) - - Gain related to sale of Gradall excavator product line - 14,572 - 14,572 NET INCOME Strategic Initiatives/Integration (in both COS and SA&PD) - (13,581) (6,247) (4,789) Merger related costs (in SA&PD) (2,634) - - - Net expenses on early extinguishment of debt - (1,196) (312) (526) Currency effects (in Miscellaneous-net) 883 (1,707) 13 (1,715) Bad debt charges (in SA&PD) (246) (3,928) (818) (141) Inventory charges (in COS) (206) (1,279) (89) 64 Early vesting incentives (in both COS, SA&PD) - - - - Other Incentive pay (in both COS, SA&PD) (3,557) (15,999) (6,304) (3,774) Estimated net unrecovered steel cost (in COS) (3) - (3,704) - - Gain related to sale of Gradall excavator product line - 8,988 - 8,777 EARNINGS PER SHARE (1) Strategic Initiatives/Integration (in both COS and SA&PD) - (0.13) (0.06) (0.04) Merger related costs (in SA&PD) (0.02) - - - Net expenses on early extinguishment of debt - (0.01) - - Currency effects (in Miscellaneous-net) 0.01 (0.02) - (0.02) Bad debt charges (in SA&PD) - (0.04) (0.01) - Inventory charges (in COS) - (0.01) - - Early vesting incentives (in both COS, SA&PD) - - - - Other Incentive pay (in both COS, SA&PD) (0.03) (0.15) (0.06) (0.04) Estimated net unrecovered steel cost (in COS) (3) - (0.03) - - Gain related to sale of Gradall excavator product line - 0.08 - 0.08 BALANCE SHEET & LIQUIDITY MEASURES Cash & cash equivalents $307,947 $328,096 $328,096 $304,895 Trade accounts and finance receivables, net 401,283 445,631 445,631 393,966 Inventories 326,406 212,864 212,864 216,901 Total balance sheet debt 231,006 239,581 239,581 252,047 Limited recourse debt from finance receivables monetizations 19,350 23,719 23,719 28,516 Net debt (4) (96,291) (112,234) (112,234) (81,364) -------------------------- Net debt (4) to total capitalization - - - - -------------------------- Maximum loss exposure under loss pool agreements related to finance receivable monetizations 6,617 8,818 8,818 8,818 Equity 717,302 675,432 675,432 625,736 Working capital 650,007 607,460 607,460 575,593 Depreciation and amortization 7,106 28,551 6,410 7,701 Capital expenditures, net of retirements (10,756) 32,241 15,837 9,622 Free cash flow (5) (15,943) 114,330 30,870 126,423 -------------------------- FINANCIAL RATIOS Days sales outstanding 57.3 51.2 51.2 46.8 Days payables outstanding 50.5 44.2 44.2 45.2 Inventory turnover (annualized) 7.2 7.6 7.6 7.5 Quarter Ended Fiscal Year January October Ended July 29, 2006 30, 2005 31, 2005 ---------- --------- ----------- REVENUES AND PROFITABILITY Revenues $494,426 $477,723 $1,735,030 Gross profit margin 19.4% 19.9% 16.6% EBITDA 59,400 59,344 154,185 ------------------------------------- Trailing twelve month EBITDA 243,633 211,344 154,185 ------------------------------------- Trailing twelve month EBITDA margin 11.9% 11.1% 8.9% ------------------------------------- Operating income 49,734 50,366 120,261 Operating profit margin 10.1% 10.5% 6.9% Net income margin 5.5% 5.8% 3.3% Reported earnings per diluted share (1) $0.26 $0.27 $0.60 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)) $(3,375) $(845) $(6,261) Merger related costs (in SA&PD) - - - Net expenses on early extinguishment of debt (574) - (6,493) Currency effects (in Miscellaneous- net) (672) 731 5,826 Bad debt charges (in SA&PD) (1,336) (3,509) (6,977) Inventory charges (in COS) (551) (1,488) (4,423) Early vesting incentives (in both COS, SA&PD) - - (1,658) Other Incentive pay (in both COS, SA&PD) (4,888) (4,846) (22,194) Estimated net unrecovered steel cost (in COS) (3) - (6,005) (64,753) Gain related to sale of Gradall excavator product line - - - NET INCOME Strategic Initiatives/Integration (in both COS and SA&PD) (2,146) (503) (3,846) Merger related costs (in SA&PD) - - (3,846) Net expenses on early extinguishment of debt (365) - (3,988) Currency effects (in Miscellaneous- net) (427) 435 3,578 Bad debt charges (in SA&PD) (850) (2,088) (4,285) Inventory charges (in COS) (350) (885) (2,717) Early vesting incentives (in both COS, SA&PD) - - (1,018) Other Incentive pay (in both COS, SA&PD) (3,109) (2,883) (13,632) Estimated net unrecovered steel cost (in COS) (3) - (3,573) (39,771) Gain related to sale of Gradall excavator product line - - - EARNINGS PER SHARE (1) Strategic Initiatives/Integration (in both COS and SA&PD) (0.02) - (0.04) Merger related costs (in SA&PD) - - (0.04) Net expenses on early extinguishment of debt - - (0.04) Currency effects (in Miscellaneous- net) - - 0.04 Bad debt charges (in SA&PD) (0.01) (0.02) (0.04) Inventory charges (in COS) - (0.01) (0.03) Early vesting incentives (in both COS, SA&PD) - - (0.01) Other Incentive pay (in both COS, SA&PD) (0.03) (0.03) (0.14) Estimated net unrecovered steel cost (in COS) (3) - (0.03) (0.42) Gain related to sale of Gradall excavator product line - - - BALANCE SHEET & LIQUIDITY MEASURES Cash & cash equivalents $183,344 $230,947 $223,597 Trade accounts and finance receivables, net 379,813 379,393 419,866 Inventories 227,957 218,881 169,097 Total balance sheet debt 273,721 278,877 289,351 Limited recourse debt from finance receivables monetizations 45,318 55,921 63,658 Net debt (4) 45,059 (7,991) 2,096 ------------------------------------- Net debt (4) to total capitalization 7% - - ------------------------------------- Maximum loss exposure under loss pool agreements related to finance receivable monetizations 11,346 11,855 22,160 Equity 566,870 507,140 478,592 Working capital 523,417 505,787 489,187 Depreciation and amortization 7,907 6,533 28,899 Capital expenditures, net of retirements 3,653 3,129 13,435 Free cash flow (5) (53,050) 10,087 267,457 ------------------------------------- FINANCIAL RATIOS Days sales outstanding 62.3 62.7 57.1 Days payables outstanding 40.6 46.4 50.5 Inventory turnover (annualized) 7.6 7.8 7.6 (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. *T -0- *T JLG INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (in thousands, except per share data) (Quarterly data is unaudited) Quarter Quarter Ended Ended Fiscal Year October Ended July July 31, April 30, 29, 2006 31, 2006 2006 2006 --------- ----------- --------- --------- Revenues Net sales $534,391 $2,268,322 $682,789 $624,686 Financial products 2,288 11,093 2,647 2,216 Rentals 2,631 9,981 2,196 2,713 --------- ----------- --------- --------- 539,310 2,289,396 687,632 629,615 Cost of sales 422,558 1,846,371 553,394 511,552 --------- ----------- --------- --------- Gross profit 116,752 443,025 134,238 118,063 Gross profit margin 21.6% 19.4% 19.5% 18.8% Selling and administrative expenses 42,721 164,362 45,975 41,025 Selling & administrative % 7.9% 7.2% 6.7% 6.5% Product development expenses 7,656 30,251 10,069 6,920 Product development % 1.4% 1.3% 1.5% 1.1% Merger related costs 4,149 - - - Gain related to sale of Gradall excavator product line - (14,572) - (14,572) --------- ----------- --------- --------- Income from operations 62,226 262,984 78,194 84,690 Operating profit margin 11.5% 11.5% 11.4% 13.5% Other income (deductions): Interest expense (net of interest income) (1,403) (17,710) (2,526) (4,030) Miscellaneous, net 2,147 (3,166) (195) (3,974) --------- ----------- --------- --------- Income before taxes 62,970 242,108 75,473 76,686 Income tax provision 22,990 92,764 27,602 30,499 --------- ----------- --------- --------- Net income $39,980 $149,344 $47,871 $46,187 ========= =========== ========= ========= Return on revenues 7.4% 6.5% 7.0% 7.3% Earnings per common share $.38 $1.43 $.45 $.44 ========= =========== ========= ========= Earnings per common share - assuming dilution $.37 $1.40 $.45 $.43 ========= =========== ========= ========= Cash Dividends per share $.0050 $.0150 $.0050 $.0050 ========= =========== ========= ========= Average basic shares outstanding 105,591 104,294 105,465 105,088 ========= =========== ========= ========= Average diluted shares outstanding 107,174 106,518 107,199 107,232 ========= =========== ========= ========= Quarter Ended Fiscal Year January October Ended July 29, 2006 30, 2005 31, 2005 ---------- --------- ----------- Revenues Net sales $488,411 $472,436 $1,713,782 Financial products 3,256 2,974 11,915 Rentals 2,759 2,313 9,333 ---------- --------- ----------- 494,426 477,723 1,735,030 Cost of sales 398,566 382,859 1,447,785 ---------- --------- ----------- Gross profit 95,860 94,864 287,245 Gross profit margin 19.4% 19.9% 16.6% Selling and administrative expenses 39,301 38,061 142,383 Selling & administrative % 7.9% 8.0% 8.2% Product development expenses 6,825 6,437 24,601 Product development % 1.4% 1.3% 1.4% Merger related costs - - - Gain related to sale of Gradall excavator product line - - - ---------- --------- ----------- Income from operations 49,734 50,366 120,261 Operating profit margin 10.1% 10.5% 6.9% Other income (deductions): Interest expense (net of interest income) (6,688) (4,466) (28,609) Miscellaneous, net 69 934 1,436 ---------- --------- ----------- Income before taxes 43,115 46,834 93,088 Income tax provision 15,695 18,968 35,915 ---------- --------- ----------- Net income $27,420 $27,866 $57,173 ========== ========= =========== Return on revenues 5.5% 5.8% 3.3% Earnings per common share $.26 $.27 $.61 ========== ========= =========== Earnings per common share - assuming dilution $.26 $.27 $.60 ========== ========= =========== Cash Dividends per share $.0025 $.0025 $.0100 ========== ========= =========== Average basic shares outstanding 104,042 102,424 93,058 ========== ========= =========== Average diluted shares outstanding 106,374 105,112 95,586 ========== ========= =========== *T -0- *T JLG INDUSTRIES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (in thousands, except per share data) (Quarterly data is unaudited) October 29, July 31, April 30, 2006 2006 2006 ----------- ----------- ----------- ASSETS --------------------------------- Current assets Cash and cash equivalents $307,947 $328,096 $304,895 Trade accounts and finance receivables, net 401,283 445,631 393,966 Inventories 326,406 212,864 216,901 Assets held for sale - - - Other current assets 39,917 47,613 26,595 ----------- ----------- ----------- Total current assets 1,075,553 1,034,204 942,357 Property, plant and equipment, net 106,033 98,345 87,447 Equipment held for rental, net 25,396 21,477 21,934 Finance receivables, less current portion 23,485 29,193 29,472 Pledged finance receivables, less current portion 4,715 7,668 11,923 Goodwill 57,382 57,388 60,513 Intangible assets, net 73,190 74,142 74,557 Other assets 75,707 74,872 72,197 ----------- ----------- ----------- $1,441,461 $1,397,289 $1,300,400 =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY --------------------------------- Current liabilities Short-term debt and current portion of long-term debt $3,496 $8,484 $8,447 Current portion of limited recourse debt from finance receivables monetizations 14,590 16,001 16,531 Accounts payable 271,190 233,746 221,342 Accrued expenses 136,270 168,513 120,444 ----------- ----------- ----------- Total current liabilities 425,546 426,744 366,764 Long-term debt, less current portion 208,160 207,378 215,084 Limited recourse debt from finance receivables monetizations, less current portion 4,760 7,718 11,985 Accrued post-retirement benefits 25,748 25,748 25,193 Other long-term liabilities 21,891 19,984 23,152 Provisions for contingencies 38,054 34,285 32,486 Shareholders' equity Capital stock: Authorized shares: 200,000 at $.20 par value Issued shares: 106,754; fiscal 2006 - 106,751; fiscal 2005 - 103,290 21,351 21,350 21,268 Additional paid-in capital 212,344 209,290 206,710 Retained earnings 497,722 458,276 410,937 Unearned compensation - - - Accumulated other comprehensive loss (14,115) (13,484) (13,179) ----------- ----------- ----------- Total shareholders' equity 717,302 675,432 625,736 ----------- ----------- ----------- $1,441,461 $1,397,289 $1,300,400 =========== =========== =========== January 29, October 30, July 31, 2006 2005 2005 ----------- ----------- ----------- ASSETS --------------------------------- Current assets Cash and cash equivalents $183,344 $230,947 $223,597 Trade accounts and finance receivables, net 379,813 379,393 419,866 Inventories 227,957 218,881 169,097 Assets held for sale 49,941 - - Other current assets 42,715 48,417 56,739 ----------- ----------- ----------- Total current assets 883,770 877,638 869,299 Property, plant and equipment, net 82,746 84,879 85,855 Equipment held for rental, net 36,684 38,401 22,570 Finance receivables, less current portion 26,500 29,688 30,354 Pledged finance receivables, less current portion 18,623 26,589 33,649 Goodwill 60,419 61,598 61,641 Intangible assets, net 75,371 31,795 32,086 Other assets 68,379 64,675 68,143 ----------- ----------- ----------- $1,252,492 $1,215,263 $1,203,597 =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY --------------------------------- Current liabilities Short-term debt and current portion of long-term debt $6,515 $1,486 $1,496 Current portion of limited recourse debt from finance receivables monetizations 26,558 29,045 29,642 Accounts payable 187,591 200,281 200,323 Accrued expenses 139,689 141,039 148,651 ----------- ----------- ----------- Total current liabilities 360,353 371,851 380,112 Long-term debt, less current portion 221,888 221,470 224,197 Limited recourse debt from finance receivables monetizations, less current portion 18,760 26,876 34,016 Accrued post-retirement benefits 31,797 31,455 31,113 Other long-term liabilities 22,117 28,464 27,233 Provisions for contingencies 30,707 28,007 28,334 Shareholders' equity Capital stock: Authorized shares: 200,000 at $.20 par value Issued shares: 106,754; fiscal 2006 - 106,751; fiscal 2005 - 103,290 21,100 20,666 20,658 Additional paid-in capital 193,021 165,119 170,367 Retained earnings 365,280 338,124 310,516 Unearned compensation - - (7,397) Accumulated other comprehensive loss (12,531) (16,769) (15,552) ----------- ----------- ----------- Total shareholders' equity 566,870 507,140 478,592 ----------- ----------- ----------- $1,252,492 $1,215,263 $1,203,597 =========== =========== =========== *T -0- *T JLG INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW (in thousands) (Quarterly data is unaudited) Quarter Fiscal Quarter Ended Ended Year October Ended July July 31, April 30, 29, 2006 31, 2006 2006 2006 --------- ---------- --------- --------- OPERATIONS Net income (loss) $39,980 $149,344 $47,871 $46,187 Adjustments to reconcile net income (loss) to cash flow from operating activities: Gain related to sale of Gradall excavator product line - (14,572) - (14,572) (Gain) loss on sale of property, plant and equipment (1) (383) (359) 5 Gain on sale of equipment held for rental (42) (13,745) (506) (7,555) Non-cash charges and credits: Depreciation and amortization 7,106 28,551 6,410 7,701 Other 20,012 24,377 971 11,238 Changes in selected working capital items: Accounts receivable 49,542 (45,350) (58,188) (13,080) Inventories (113,624) (64,712) 5,470 10,368 Accounts payable 37,443 42,312 12,405 35,610 Other operating assets and liabilities (35,652) 33,484 29,722 9,160 Changes in finance receivables 752 (2,315) 3,394 (3,645) Changes in pledged finance receivables (54) (627) (65) (133) Changes in other assets and liabilities (1,163) (17,613) 1,035 (11,506) --------- ---------- --------- --------- Cash flow from operating activities 4,299 118,751 48,160 69,778 INVESTMENTS Purchases of property, plant and equipment (10,781) (32,597) (16,065) (9,643) Proceeds from the sale of property, plant and equipment 26 739 587 16 Purchases of equipment held for rental (7,058) (43,527) (4,246) (11,890) Proceeds from the sale of equipment held for rental 90 50,552 3,413 32,396 Proceeds from the sale of Gradall excavator product line - 32,992 576 32,416 Cash portion of acquisitions - (47,093) - (58) Other (48) 150 (204) 422 --------- ---------- --------- --------- Cash flow used for investing activities (17,771) (38,784) (15,939) 43,659 FINANCING Net issuance (repayment) of short-term debt (5,001) 52 14 26 Issuance of long-term debt - 10,000 - 10,000 Repayment of long-term debt (575) (21,455) (8,584) (12,678) Payment of dividends (534) (1,584) (532) (530) Net proceeds from issuance of common stock - - - - Cash proceeds received from the exercise of stock options 75 18,494 493 4,510 Excess tax benefits from stock-based compensation 42 20,384 - 7,323 --------- ---------- --------- --------- Cash flow from financing activities (5,993) 25,891 (8,609) 8,651 CURRENCY ADJUSTMENTS Effect of exchange rate changes on cash (684) (1,359) (411) (537) CASH AND CASH EQUIVALENTS Net change in cash and cash equivalents (20,149) 104,499 23,201 121,551 Beginning balance 328,096 223,597 304,895 183,344 --------- ---------- --------- --------- Ending balance $307,947 $328,096 $328,096 $304,895 ========= ========== ========= ========= Quarter Ended Fiscal Year January October Ended July 29, 2006 30, 2005 31, 2005 ---------- --------- ---------- OPERATIONS Net income (loss) $27,420 $27,866 $57,173 Adjustments to reconcile net income (loss) to cash flow from operating activities: Gain related to sale of Gradall excavator product line - - - (Gain) loss on sale of property, plant and equipment 57 (86) 948 Gain on sale of equipment held for rental (5,612) (72) (11,711) Non-cash charges and credits: Depreciation and amortization 7,907 6,533 28,899 Other 5,137 7,031 6,986 Changes in selected working capital items: Accounts receivable (13,268) 39,186 (25,948) Inventories (30,523) (50,027) (15,268) Accounts payable (5,669) (34) 60,423 Other operating assets and liabilities (6,722) 1,324 30,623 Changes in finance receivables (3,415) 1,351 1,877 Changes in pledged finance receivables (233) (196) 36 Changes in other assets and liabilities (3,720) (3,422) 8,374 ---------- --------- ---------- Cash flow from operating activities (28,641) 29,454 142,412 INVESTMENTS Purchases of property, plant and equipment (3,744) (3,145) (15,443) Proceeds from the sale of property, plant and equipment 34 102 1,060 Purchases of equipment held for rental (9,270) (18,121) (31,249) Proceeds from the sale of equipment held for rental 14,305 438 35,065 Proceeds from the sale of Gradall excavator product line - - - Cash portion of acquisitions (47,035) - (105) Other (40) (28) 366 ---------- --------- ---------- Cash flow used for investing activities (45,750) (20,754) (10,306) FINANCING Net issuance (repayment) of short- term debt 23 (11) (6) Issuance of long-term debt - - 156,018 Repayment of long-term debt (96) (97) (232,666) Payment of dividends (264) (258) (925) Net proceeds from issuance of common stock - - 119,421 Cash proceeds received from the exercise of stock options 13,327 164 19,826 Excess tax benefits from stock-based compensation 13,017 44 - ---------- --------- ---------- Cash flow from financing activities 26,007 (158) 61,668 CURRENCY ADJUSTMENTS Effect of exchange rate changes on cash 781 (1,192) (7,833) CASH AND CASH EQUIVALENTS Net change in cash and cash equivalents (47,603) 7,350 185,941 Beginning balance 230,947 223,597 37,656 ---------- --------- ---------- Ending balance $183,344 $230,947 $223,597 ========== ========= ========== *T -0- *T JLG INDUSTRIES, INC. CONSOLIDATED SELECTED SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) (Quarterly data is unaudited) Quarter Quarter Ended Ended Fiscal Year October Ended July July 31, April 30, 29, 2006 31, 2006 2006 2006 --------- ----------- --------- --------- SEGMENT INFORMATION REVENUES: North American Distribution $370,962 $1,704,030 $509,653 $462,772 European Distribution 118,915 407,143 137,233 124,521 Rest of World Distribution 47,094 166,820 37,985 40,051 Access Financial Solutions 2,339 11,403 2,761 2,271 --------- ----------- --------- --------- $539,310 $2,289,396 $687,632 $629,615 ========= =========== ========= ========= SEGMENT PROFIT (LOSS): North American Distribution $55,135 $254,167 $79,554 $75,997 European Distribution 19,367 38,969 14,082 16,032 Rest of World Distribution 10,848 39,411 7,966 8,304 Access Financial Solutions 425 4,937 1,544 1,139 Corporate expense (23,936) (77,585) (25,419) (17,443) --------- ----------- --------- --------- Segment profit 61,839 259,899 77,727 84,029 Add: AFS' interest expense 387 3,085 467 661 --------- ----------- --------- --------- Operating income $62,226 $262,984 $78,194 $84,690 ========= =========== ========= ========= PRODUCT GROUP REVENUES Aerial work platforms $299,388 $1,159,778 $360,367 $320,827 Telehandlers 164,429 776,001 254,546 202,637 Excavators - 26,798 - 865 After-sales service and support, including parts sales, and used and reconditioned equipment sales 70,574 305,745 67,876 100,357 Financial products 2,288 11,093 2,647 2,216 Rentals 2,631 9,981 2,196 2,713 --------- ----------- --------- --------- $539,310 $2,289,396 $687,632 $629,615 ========= =========== ========= ========= GEOGRAPHIC REVENUES United States $364,914 $1,678,674 $500,788 $456,630 Europe 119,344 408,513 138,010 124,621 Other international 55,052 202,209 48,834 48,364 --------- ----------- --------- --------- $539,310 $2,289,396 $687,632 $629,615 ========= =========== ========= ========= Quarter Ended Fiscal Year January October Ended July 29, 2006 30, 2005 31, 2005 ---------- --------- ----------- SEGMENT INFORMATION REVENUES: North American Distribution $369,725 $361,880 $1,329,682 European Distribution 83,062 62,327 261,602 Rest of World Distribution 38,329 50,455 129,995 Access Financial Solutions 3,310 3,061 13,751 ---------- --------- ----------- $494,426 $477,723 $1,735,030 ========== ========= =========== SEGMENT PROFIT (LOSS): North American Distribution $47,903 $50,713 $114,255 European Distribution 6,659 2,196 21,489 Rest of World Distribution 9,001 14,140 32,475 Access Financial Solutions 1,166 1,088 4,420 Corporate expense (15,891) (18,832) (58,774) ---------- --------- ----------- Segment profit 48,838 49,305 113,865 Add: AFS' interest expense 896 1,061 6,396 ---------- --------- ----------- Operating income $49,734 $50,366 $120,261 ========== ========= =========== PRODUCT GROUP REVENUES Aerial work platforms $234,710 $243,874 $888,073 Telehandlers 160,715 158,103 511,766 Excavators 16,902 9,031 61,562 After-sales service and support, including parts sales, and used and reconditioned equipment sales 76,084 61,428 252,381 Financial products 3,256 2,974 11,915 Rentals 2,759 2,313 9,333 ---------- --------- ----------- $494,426 $477,723 $1,735,030 ========== ========= =========== GEOGRAPHIC REVENUES United States $366,343 $354,913 $1,311,450 Europe 83,349 62,533 264,032 Other international 44,734 60,277 159,548 ---------- --------- ----------- $494,426 $477,723 $1,735,030 ========== ========= =========== *T -0- *T JLG INDUSTRIES, INC. EBITDA QUARTERLY PERIODS (in thousands) October April January October 29, July 31, 30, 29, 30, July 31, 2006 2006 2006 2006 2005 2005 -------- -------- -------- -------- -------- -------- Net income $39,980 $47,871 $46,187 $27,420 $27,866 $35,696 Interest expense 5,884 6,351 6,565 8,378 5,977 6,326 Income tax provision 22,990 27,602 30,499 15,695 18,968 21,716 Depreciation and amortization 7,106 6,410 7,701 7,907 6,533 7,365 -------- -------- -------- -------- -------- -------- EBITDA $75,960 $88,234 $90,952 $59,400 $59,344 $71,103 ======== ======== ======== ======== ======== ======== 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. *T -0- *T JLG INDUSTRIES, INC. EBITDA AND EBITDA MARGINS TRAILING TWELVE MONTH PERIODS (in thousands) October 29, July 31, April 30, 2006 2006 2006 ----------- ----------- ----------- Net income $161,458 $149,344 $137,169 Interest expense 27,178 27,271 27,246 Income tax provision 96,786 92,764 86,878 Depreciation and amortization 29,124 28,551 29,506 ----------- ----------- ----------- EBITDA $314,546 $297,930 $280,799 =========== =========== =========== Revenues $2,350,983 $2,289,396 $2,171,343 =========== =========== =========== EBITDA Margin 13.4% 13.0% 12.9% =========== =========== =========== January 29, October 30, July 31, 2006 2005 2005 ------------ ----------- ----------- Net income $113,704 $93,768 $57,173 Interest expense 29,235 29,179 32,198 Income tax provision 71,401 60,053 35,915 Depreciation and amortization 29,293 28,344 28,899 ------------ ----------- ----------- EBITDA $243,633 $211,344 $154,185 ============ =========== =========== Revenues $2,047,084 $1,906,092 $1,735,030 ============ =========== =========== EBITDA Margin 11.9% 11.1% 8.9% ============ =========== =========== 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. *T -0- *T JLG INDUSTRIES, INC. NET DEBT (in thousands) October 29, July 31, April 30, 2006 2006 2006 ----------- ---------- --------- Revolving credit facilities $- $- $- Cash management facilities - - - $125 million senior notes 89,545 89,545 97,545 $175 million senior subordinated notes 113,750 113,750 113,750 Miscellaneous debt 13,311 18,886 19,455 Fair value of interest rate swaps (7,419) (8,898) (9,908) Gain on terminated interest rate swap 2,469 2,579 2,689 ----------- ---------- --------- Bank debt and notes 211,656 215,862 223,531 Limited recourse debt from finance receivables monetizations * 19,350 23,719 28,516 ----------- ---------- --------- Total balance sheet debt 231,006 239,581 252,047 Less: cash and cash equivalents 307,947 328,096 304,895 Less: limited recourse debt from finance receivables monetizations 19,350 23,719 28,516 ----------- ---------- --------- Net debt $(96,291) $(112,234) $(81,364) =========== ========== ========= Shareholders' Equity $717,302 $675,432 $625,736 =========== ========== ========= Net Debt-to-Net Debt plus Shareholders' Equity - - - =========== ========== ========= Total Balance Sheet Debt-to-Total Balance Sheet Debt plus Shareholders' Equity 24% 26% 29% =========== ========== ========= * Maximum loss exposure under loss pool agreements related to finance receivable monetizations $6,617 $8,818 $8,818 =========== ========== ========= January 29, October 30, July 31, 2006 2005 2005 ----------- ----------- --------- Revolving credit facilities $- $- $- Cash management facilities - - - $125 million senior notes 109,975 109,975 109,975 $175 million senior subordinated notes 113,750 113,750 113,750 Miscellaneous debt 9,678 4,751 4,859 Fair value of interest rate swaps (7,799) (8,428) (5,909) Gain on terminated interest rate swap 2,799 2,908 3,018 ----------- ----------- --------- Bank debt and notes 228,403 222,956 225,693 Limited recourse debt from finance receivables monetizations * 45,318 55,921 63,658 ----------- ----------- --------- Total balance sheet debt 273,721 278,877 289,351 Less: cash and cash equivalents 183,344 230,947 223,597 Less: limited recourse debt from finance receivables monetizations 45,318 55,921 63,658 ----------- ----------- --------- Net debt $45,059 $(7,991) $2,096 =========== =========== ========= Shareholders' Equity $566,870 $507,140 $478,592 =========== =========== ========= Net Debt-to-Net Debt plus Shareholders' Equity 7% - - =========== =========== ========= Total Balance Sheet Debt-to-Total Balance Sheet Debt plus Shareholders' Equity 33% 35% 38% =========== =========== ========= * Maximum loss exposure under loss pool agreements related to finance receivable monetizations $11,346 $11,855 $22,160 =========== =========== ========= 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. *T -0- *T JLG INDUSTRIES, INC. FREE CASH FLOW (in thousands) Quarter Ended Fiscal Year Ended October 29, July 31, 2006 2006 ----------------- ----------------- Net income $39,980 $149,344 Adjustments to reconcile net income to cash flow from operating activities: Non-cash items 27,075 24,228 Accounts receivable 49,542 (45,350) Inventories (113,624) (64,712) Other current assets (13,716) 17,653 Accounts payable 37,443 42,312 Accrued expenses (21,936) 15,831 Finance receivables 752 (2,315) Other cash from operations (1,163) (17,613) Purchases of property, plant and equipment (10,781) (32,597) Proceeds from the sale of property, plant and equipment 26 739 Purchases of equipment held for rental (7,058) (43,527) Proceeds from the sale of equipment held for rental 90 50,552 Proceeds from the sale of Gradall excavator product line - 32,992 Cash portion of acquisitions - (47,093) Other cash from investments (48) 150 Payment of dividends (534) (1,584) Net proceeds from issuance of common stock - - Cash proceeds received from the exercise of stock options 75 18,494 Excess tax benefits from stock-based compensation 42 20,384 Effect of exchange rate changes on cash (684) (1,359) Seller financing - (5,000) Other (1) (1,424) 2,801 ----------------- ----------------- Free Cash Flow $(15,943) $114,330 ================= ================= Fiscal Year Quarter Ended Ended July 31, April 30, January 29, October 30, July 31, 2006 2006 2006 2005 2005 -------- --------- ----------- ----------- --------- Net income $47,871 $46,187 $27,420 $27,866 $57,173 Adjustments to reconcile net income to cash flow from operating activities: Non-cash items 6,516 (3,183) 7,489 13,406 25,122 Accounts receivable (58,188) (13,080) (13,268) 39,186 (25,948) Inventories 5,470 10,368 (30,523) (50,027) (15,268) Other current assets (7,860) 11,633 4,345 9,535 (12,553) Accounts payable 12,405 35,610 (5,669) (34) 60,423 Accrued expenses 37,582 (2,473) (11,067) (8,211) 43,176 Finance receivables 3,394 (3,645) (3,415) 1,351 1,877 Other cash from operations 1,035 (11,506) (3,720) (3,422) 8,374 Purchases of property, plant and equipment (16,065) (9,643) (3,744) (3,145) (15,443) Proceeds from the sale of property, plant and equipment 587 16 34 102 1,060 Purchases of equipment held for rental (4,246) (11,890) (9,270) (18,121) (31,249) Proceeds from the sale of equipment held for rental 3,413 32,396 14,305 438 35,065 Proceeds from the sale of Gradall excavator product line 576 32,416 - - - Cash portion of acquisitions - (58) (47,035) - (105) Other cash from investments (204) 422 (40) (28) 366 Payment of dividends (532) (530) (264) (258) (925) Net proceeds from issuance of common stock - - - - 119,421 Cash proceeds received from the exercise of stock options 493 4,510 13,327 164 19,826 Excess tax benefits from stock-based compensation - 7,323 13,017 44 - Effect of exchange rate changes on cash (411) (537) 781 (1,192) (7,833) Seller financing - - (5,000) - - Other (1) (966) 2,087 (753) 2,433 4,898 -------- --------- ----------- ----------- --------- Free Cash Flow $30,870 $126,423 $(53,050) $10,087 $267,457 ======== ========= =========== =========== ========= (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, cash proceeds received from the exercise of stock options, excess tax benefits from stock- based compensation 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. *T -0- *T JLG INDUSTRIES, INC. STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) CONSOLIDATED EQUIPMENT OPERATIONS JLG Industries, Inc. JLG Industries, Inc. with Access Financial and Consolidated Solutions on the Subsidiaries Equity Basis ----------------------- ----------------------- Three Months Ended Three Months Ended October 29, October 30, October 29, October 30, 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Revenues Net sales $534,391 $472,436 $534,391 $472,436 Financial products 2,288 2,974 - - Rentals 2,631 2,313 2,580 2,226 ----------- ----------- ----------- ----------- 539,310 477,723 536,971 474,662 Cost of sales 422,558 382,859 422,487 382,793 ----------- ----------- ----------- ----------- Gross profit 116,752 94,864 114,484 91,869 Selling and administrative expenses 42,721 38,061 41,265 37,215 Product development expenses 7,656 6,437 7,656 6,437 Merger related costs 4,149 - 4,149 - ----------- ----------- ----------- ----------- Income from operations 62,226 50,366 61,414 48,217 Other income (deductions): Interest expense, net of interest income (1,403) (4,466) (1,016) (3,405) Miscellaneous, net 2,147 934 2,147 934 ----------- ----------- ----------- ----------- Income before taxes 62,970 46,834 62,545 45,746 Income tax provision 22,990 18,968 22,835 18,527 Equity in income of Access Financial Solutions - - 270 647 ----------- ----------- ----------- ----------- Net income $39,980 $27,866 $39,980 $27,866 =========== =========== =========== =========== Earnings per common share $.38 $.27 =========== =========== Earnings per common share - assuming dilution $.37 $.27 Cash dividends per share $.005 $.0025 =========== =========== Weighted average shares outstanding 105,591 102,424 =========== =========== Weighted average shares outstanding - assuming dilution 107,174 105,112 FINANCIAL SERVICES Access Financial Solutions -------------------------- Three Months Ended October 29, October 30, 2006 2005 -------------- ----------- Revenues Net sales $- $- Financial products 2,288 2,974 Rentals 51 87 -------------- ----------- 2,339 3,061 Cost of sales 71 66 -------------- ----------- Gross profit 2,268 2,995 Selling and administrative expenses 1,456 846 Product development expenses - - Merger related costs - - -------------- ----------- Income from operations 812 2,149 Other income (deductions): Interest expense, net of interest income (387) (1,061) Miscellaneous, net - - -------------- ----------- Income before taxes 425 1,088 Income tax provision 155 441 Equity in income of Access Financial Solutions - - -------------- ----------- Net income $270 $647 ============== =========== Earnings per common share Earnings per common share - assuming dilution Cash dividends per share Weighted average shares outstanding Weighted average shares outstanding - assuming dilution *T -0- *T JLG INDUSTRIES, INC. BALANCE SHEETS (in thousands, except per share data) (unaudited) CONSOLIDATED EQUIPMENT OPERATIONS JLG Industries, Inc. JLG Industries, Inc. with Access Financial and Consolidated Solutions on the Subsidiaries Equity Basis ----------------------- ----------------------- October 29, July 31, October 29, July 31, 2006 2006 2006 2006 ----------- ----------- ----------- ----------- ASSETS ---------------------- Current assets Cash and cash equivalents $307,947 $328,096 $307,947 $328,096 Trade accounts and finance receivables - net 401,283 445,631 358,271 405,003 Inventories 326,406 212,864 326,406 212,864 Other current assets 39,917 47,613 39,917 47,613 ----------- ----------- ----------- ----------- Total current assets 1,075,553 1,034,204 1,032,541 993,576 Property, plant and equipment - net 106,033 98,345 105,957 98,253 Equipment held for rental - net 25,396 21,477 25,347 21,384 Finance receivables, less current portion 23,485 29,193 - - Pledged receivables, less current portion 4,715 7,668 - - Goodwill 57,382 57,388 57,382 57,388 Intangible assets - net 73,190 74,142 73,190 74,142 Investment in Access Financial Solutions - - 43,800 43,530 Receivable from Access Financial Solutions - - 5,262 8,403 Other assets 75,707 74,872 75,567 74,899 ----------- ----------- ----------- ----------- $1,441,461 $1,397,289 $1,419,046 $1,371,575 =========== =========== =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY ---------------------- Current liabilities Short-term debt and current portion of long-term debt $3,496 $8,484 $3,496 $8,484 Current portion of limited recourse debt from finance receivables monetizations 14,590 16,001 - - Accounts payable 271,190 233,746 271,190 233,746 Accrued expenses 136,270 168,513 136,021 168,458 ----------- ----------- ----------- ----------- Total current liabilities 425,546 426,744 410,707 410,688 Long-term debt, less current portion 208,160 207,378 208,160 207,378 Limited recourse debt from finance receivables monetizations, less current portion 4,760 7,718 - - Payable to JLG Industries, Inc. - - - - Accrued post- retirement benefits 25,748 25,748 25,748 25,748 Other long-term liabilities 21,891 19,984 21,891 19,984 Provisions for contingencies 38,054 34,285 35,238 32,345 Shareholders' equity Capital stock: Authorized shares: 200,000 at $.20 par value Issued and outstanding shares: 106,754 shares; fiscal 2006 - 106,751 shares 21,351 21,350 21,351 21,350 Additional paid-in capital 212,344 209,290 212,344 209,290 Retained earnings 497,722 458,276 497,722 458,276 Accumulated other comprehensive loss (14,115) (13,484) (14,115) (13,484) ----------- ----------- ----------- ----------- Total shareholders' equity 717,302 675,432 717,302 675,432 ----------- ----------- ----------- ----------- $1,441,461 $1,397,289 $1,419,046 $1,371,575 =========== =========== =========== =========== FINANCIAL SERVICES Access Financial Solutions -------------------------- October 29, July 31, 2006 2006 ------------- ------------ ASSETS ---------------------- Current assets Cash and cash equivalents $- $- Trade accounts and finance receivables - net 43,012 40,628 Inventories - - Other current assets - - ------------- ------------ Total current assets 43,012 40,628 Property, plant and equipment - net 76 92 Equipment held for rental - net 49 93 Finance receivables, less current portion 23,485 29,193 Pledged receivables, less current portion 4,715 7,668 Goodwill - - Intangible assets - net - - Investment in Access Financial Solutions - - Receivable from Access Financial Solutions - - Other assets 140 (27) ------------- ------------ $71,477 $77,647 ============= ============ LIABILITIES AND SHAREHOLDERS' EQUITY ---------------------- Current liabilities Short-term debt and current portion of long-term debt $- $- Current portion of limited recourse debt from finance receivables monetizations 14,590 16,001 Accounts payable - - Accrued expenses 249 55 ------------- ------------ Total current liabilities 14,839 16,056 Long-term debt, less current portion - - Limited recourse debt from finance receivables monetizations, less current portion 4,760 7,718 Payable to JLG Industries, Inc. 5,262 8,403 Accrued post- retirement benefits - - Other long-term liabilities - - Provisions for contingencies 2,816 1,940 Shareholders' equity Capital stock: Authorized shares: 200,000 at $.20 par value Issued and outstanding shares: 106,754 shares; fiscal 2006 - 106,751 shares 30,000 30,000 Additional paid-in capital - - Retained earnings 13,800 13,530 Accumulated other comprehensive loss - - ------------- ------------ Total shareholders' equity 43,800 43,530 ------------- ------------ $71,477 $77,647 ============= ============ *T -0- *T JLG INDUSTRIES, INC. STATEMENTS OF CASH FLOWS (in thousands) (unaudited) CONSOLIDATED EQUIPMENT OPERATIONS JLG Industries, Inc. JLG Industries, Inc. with Access Financial and Consolidated Solutions on the Subsidiaries Equity Basis ----------------------- ----------------------- Three Months Ended Three Months Ended October 29, October 30, October 29, October 30, 2006 2005 2006 2005 ----------- ----------- ----------- ----------- Operations Net income $39,980 $27,866 $39,980 $27,866 Adjustments to reconcile net income to cash flow from operating activities: (Gain) loss on sale of property, plant and equipment (1) (86) (1) (86) (Gain) loss on sale of equipment held for rental (42) (72) (42) (72) Non-cash charges and credits: Depreciation and amortization 7,106 6,533 7,046 6,451 Other 20,012 7,031 19,215 6,733 Changes in selected working capital items: Accounts receivable 49,542 39,186 48,264 48,344 Inventories (113,624) (50,027) (113,624) (50,027) Accounts payable 37,443 (34) 37,443 (34) Other operating assets and liabilities (35,652) 1,324 (35,846) 1,285 Changes in finance receivables 752 1,351 - - Changes in pledged finance receivables (54) (196) - - Changes in other assets and liabilities (1,163) (3,422) (1,009) (3,395) ----------- ----------- ----------- ----------- Cash flow from operating activities 4,299 29,454 1,426 37,065 Investments Purchases of property, plant and equipment (10,781) (3,145) (10,781) (3,145) Proceeds from the sale of property, plant and equipment 26 102 26 102 Purchases of equipment held for rental (7,058) (18,121) (7,058) (18,121) Proceeds from the sale of equipment held for rental 90 438 90 438 Investment in income of Access Financial Solutions - - (270) (647) Other (48) (28) (48) (28) ----------- ----------- ----------- ----------- Cash flow used for investing activities (17,771) (20,754) (18,041) (21,401) Financing Net decrease in short-term debt (5,001) (11) (5,001) (11) Repayment of long- term debt (575) (97) (575) (97) Change in receivable from Access Financial Solutions - - 3,141 (6,965) Change in payable to JLG Industries, Inc. - - - - Payment of dividends (534) (258) (534) (258) Cash proceeds received from the exercise of stock options 75 164 75 164 Excess tax benefits from stock-based compensation 42 44 42 44 ----------- ----------- ----------- ----------- Cash flow from financing activities (5,993) (158) (2,852) (7,123) Currency Adjustments Effect of exchange rate changes on cash (684) (1,192) (682) (1,191) ----------- ----------- ----------- ----------- Cash and Cash Equivalents Net change in cash and cash equivalents (20,149) 7,350 (20,149) 7,350 Beginning balance 328,096 223,597 328,096 223,597 ----------- ----------- ----------- ----------- Ending balance $307,947 $230,947 $307,947 $230,947 =========== =========== =========== =========== FINANCIAL SERVICES Access Financial Solutions -------------------------- Three Months Ended October 29, October 30, 2006 2005 -------------- ----------- Operations Net income $270 $647 Adjustments to reconcile net income to cash flow from operating activities: (Gain) loss on sale of property, plant and equipment - - (Gain) loss on sale of equipment held for rental - - Non-cash charges and credits: Depreciation and amortization 60 82 Other 797 298 Changes in selected working capital items: Accounts receivable 1,278 (9,158) Inventories - - Accounts payable - - Other operating assets and liabilities 194 39 Changes in finance receivables 752 1,351 Changes in pledged finance receivables (54) (196) Changes in other assets and liabilities (154) (27) -------------- ----------- Cash flow from operating activities 3,143 (6,964) Investments Purchases of property, plant and equipment - - Proceeds from the sale of property, plant and equipment - - Purchases of equipment held for rental - - Proceeds from the sale of equipment held for rental - - Investment in income of Access Financial Solutions - - Other - - -------------- ----------- Cash flow used for investing activities - - Financing Net decrease in short-term debt - - Repayment of long- term debt - - Change in receivable from Access Financial Solutions - - Change in payable to JLG Industries, Inc. (3,141) 6,965 Payment of dividends - - Cash proceeds received from the exercise of stock options - - Excess tax benefits from stock-based compensation - - -------------- ----------- Cash flow from financing activities (3,141) 6,965 Currency Adjustments Effect of exchange rate changes on cash (2) (1) -------------- ----------- Cash and Cash Equivalents Net change in cash and cash equivalents - - Beginning balance - - -------------- ----------- Ending balance $- $- ============== =========== *T