JLG completes internal financial reporting review

March 16, 2004 - JLG Industries, McConnellsburg , Pa. , announced that the company has conducted an internal review of its revenue recognition practices for the last three fiscal years as well as the first six months of the current fiscal year. The company has identified no other transactions or circumstances that would require it to alter the scope of its restatement. This announcement comes after an announcement that the Securities and Exchange Commission (SEC) had begun an informal inquiry into JLG Industries' accounting and financial reporting.

A premature recognition of revenues from one transaction with a single customer affected the company's financial reporting. JLG concluded that the transaction was incorrectly reported as a sale, rather than a consignment sale, which under generally accepted accounting principles, allows recognition of the revenues only upon final sale of the equipment by the consignee.

The restatement results in an $8.7 million reduction of revenue and $1.8 million reduction in net income in the fourth quarter of fiscal 2003. Prior to the date of the amended reports, the consignee had sold all of the equipment. Accordingly, the reclassification of this transaction will result in an increase in revenue and profit recognized over the first three quarters of fiscal 2004.