JLG Surprises Wall Street with Record Fourth Quarter and Full Year

September 25, 2006 • JLG Industries, McConnellsburg, Pa., announces record consolidated financial results for the fiscal fourth-quarter and full-year, which ended July 31, 2006. Highlights for this period include revenue growth of 21% and $48 million earned net income during the fourth quarter, and revenue growth of 32 percent and earnings improved 161% for fiscal 2006. JLG also reported its manufacturing realignment and capacity expansion preparation for the Caterpillar alliance has been completed. Shipments of Caterpillar-branded telehandlers to European dealers started in July and will begin shipping to North American dealers in November.

 

During the fourth quarter, revenues were $688 million, compared to $570 million during the same period last year. The 21% increase was primarily due to sustained strong demand for access equipment, as new machine revenues rose 25%. 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% of sales, compared to $60 million, or 10.5%, during the same period last year.

 

Consolidated revenues for the full-year 2006 were $2.3 billion, a 32% 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% of revenues in 2006, compared to $120 million, or 6.9%, 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.

 

Strong demand for products in the fourth quarter has been a continuing pattern throughout fiscal 2006, said Jim Woodward, executive vice president and chief financial officer, and as a result, JLG's earnings improved despite additional expenses with the Caterpillar alliance preparations.

“We anticipate continued strong demand in fiscal 2007 and project revenue growth to be 20 to 25% greater than our record fiscal 2006 level of $2.3 billion,” he said. “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.”