Nice start Jim, UWNK 1.26 +.09! Also got JLG 19.05 +1.38 on very strong earnings: JLG Industries' Fourth-Quarter Earnings Grow 34%
Monday September 25, 8:19 am ET
Full-Year Earnings Increase to Record $149 Million on Robust Revenue Growth
MCCONNELLSBURG, Pa.--(BUSINESS WIRE)--JLG Industries, Inc. (NYSE:JLG - News) today announced record consolidated financial results for the fiscal fourth-quarter and full-year ended July 31, 2006.
Financial highlights for the periods included:
Revenue growth of 21 percent and $48 million of net income earned during the fourth quarter
Revenue growth of 32 percent and earnings improvement of 161 percent for fiscal year 2006
Continued strong cash flow from operations funding growth
Strong demand continued for access products in construction markets
"Along with achieving new records for both quarterly and full-year revenues and earnings, we achieved other significant milestones in 2006," stated Bill Lasky, Chairman of the Board, President and Chief Executive Officer. "We completed our manufacturing realignment and capacity expansion in preparation for the Caterpillar alliance and a projected increase in demand for JLG access equipment. Shipments of Caterpillar-branded telehandlers to European dealers began in late July and we will begin shipping to North American dealers in November under our exclusive 20-year private label alliance agreement. Despite some economic uncertainty and reduced residential construction activity, non-residential construction projections continue to be robust into calendar 2007. Combined with increased international activity and the new Caterpillar volume, this will continue to drive demand for JLG access products."
Fourth-Quarter 2006 Results
During the fourth quarter, revenues were $688 million, compared to $570 million during the same period last year. This increase of 21 percent was primarily due to sustained strong demand for access equipment as new machine revenues rose 25 percent. Earnings for the quarter totaled $48 million, or 45 cents per share, compared to $36 million, or 35 cents per share, during the fourth quarter of 2005. Operating income was $78 million, or 11.4 percent of sales, compared to $60 million, or 10.5 percent, during the same period last year.
Full-Year 2006 Results
Consolidated revenues were $2.3 billion, a 32 percent increase when compared to $1.7 billion in 2005. Net income was $149 million, or $1.40 per share, compared to $57 million, or 60 cents per share last year. The 2006 results include a one time pre-tax gain of $14.6 million ($8.8 million net of tax), or 8 cents per share, from the sale of the Gradall excavator business during the third quarter and $1.9 million ($1.2 million net of tax), or 1 cent per share of charges associated with the early extinguishment of debt. The 2005 results include $6.5 million ($4.0 million net of tax) or 4 cents per share of charges associated with the early extinguishment of debt. Operating income was $263 million, or 11.5 percent of revenues in 2006, compared to $120 million, or 6.9 percent, in fiscal 2005.
Cash and cash equivalents were $328 million at July 31, 2006 compared to $224 million a year ago. Cash flow from operations was $119 million.
Fiscal-Year 2007 Outlook
"Demand for our products remained strong in the fourth quarter, continuing the pattern we have seen throughout fiscal 2006," said Jim Woodward, Executive Vice President and Chief Financial Officer. "As a result, our earnings quality improved significantly despite the additional expenses associated with our Caterpillar alliance preparations and other strategic initiatives. Excluding the gain on the sale of the excavator business, the fiscal 2006 operating margin improved to 10.9 percent compared to 6.9 percent in 2005. On a full year basis, we achieved our 23-percent target for incremental operating margin."
"We anticipate continued strong demand in fiscal 2007 and project revenue growth to be 20 to 25 percent greater than our record fiscal 2006 level of $2.3 billion. With a substantial portion of our manufacturing realignment and capacity expansion behind us, and the start up of shipments under the new Caterpillar alliance, we expect fiscal 2007 earnings per share to be in a range of $1.72 to $1.82."
Quarterly Conference Call Scheduled for 2 p.m. Today
Management's detailed analysis of the Company's quarterly results will be provided during a conference call this afternoon at 2 p.m. Eastern Time. The call and accompanying slide presentation can be accessed via JLG's website at www.jlg.com, or by dialling (800) 901-5217 in the U.S. and Canada, or (617) 786-2964 from international locations. Callers must reference participant password #14994468. Please dial in 10 minutes prior to the start of the call. A replay of the call will be available on the website later in the day.
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; and (vi) costs of raw materials and energy, as well as other risks as detailed in the Company's SEC reports, including the report on Form 10-Q for the quarter ended April 30, 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.
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