JLG's Q2 Sales up 40 Percent, Stock Splits 2-for-1

February 23, 2006 • JLG Industries, McConnellsburg, Pa., announced its consolidated revenues of $494 million and earnings per share of $.52 for its fiscal second quarter ended January 29, 2006. Compared to the prior year period, revenue in the second fiscal quarter increased 40% percent, led by a 43% increase in the United States and 31% internationally. JLG's net income of $27.4 million compared with net income of $7.5 million, or $0.17 per share, in the prior year. Operating income was $49.7 million, or 10.1% of revenues, versus $17.6 million, or 5.0%, for the comparable year-ago period. The year-on-year improvement in the operating margin represents an incremental margin of 23% on the change in sales.

 

“The continued strength in demand for our products is reflected in our order board, which reached $1.0 billion at the end of the quarter, a 20% sequential increase from $849 million last quarter and over three times the $290 million level of last year,” said Bill Lasky, chairman of the board, president, and chief executive officer. “Our previous pricing actions and cost reduction activity have substantially caught up with the increases in commodities, especially steel, experienced last year. We continue to monitor pressure on product costs and work to offset the impact but remain prepared to increase pricing further if conditions warrant.”

 

Lasky continued by saying the sale of the New Philadelphia, Ohio, plant, the announced reopening of the Bedford, Pa., and Orrville, Ohio, facilities, and the capacity investments made for the Caterpillar alliance and additional JLG products will enable JLG to support significantly higher volume with basically the same manufacturing footprint beginning in the fourth quarter of the fiscal year.

 

“We now expect to spend approximately $40 million in fiscal 2006 on capital additions including capacity expansion and the Caterpillar alliance,” said Jim Woodward, executive vice president and chief financial officer. “Despite the impact of the $48 million sales volume reduction in our second half associated with the sale of the Gradall excavator product line, we project our full-year revenue growth will be at the upper end of our previously announced range 20% to 25% over fiscal 2005. Excluding the one-time pre-tax gain on the excavator transaction of approximately $13.1 million, we now expect earnings per share to be in a range from $2.35 to $2.45, up from our previous guidance of $2.15 to $2.25.”

 

The company's board of directors also announced it has increased the quarterly dividend rate to $0.01 per common share and announced a two-for-one stock split. The cash dividend is payable on March 20, 2006 to shareholders of record at the close of business on March 6, 2006. The stock split shares will be distributed on March 27, 2006, to shareholders of record on March 13, 2006. On a pro-forma post-split basis, the quarterly dividend rate will be $0.005 cents per common share.