McConnellsburg, Pa.-based JLG Industries last week announced consolidated revenues for the second quarter ended January 31, 2004 of $236.5 million, a 56 percent increase from the prior year, including sales from OmniQuip products of $49.8 million. Sales of traditional JLG products increased $35.4 million or 23 percent.
Excluding integration costs, gross profit margin improved to 19.2 percent in the second quarter compared with 17.2 percent in the same period last year, and operating income improved to $14.8 million or 6.3 percent versus $4.6 million or 3.1 percent for the year-ago period.
For the first half of fiscal 2004, consolidated revenues were $450.1 million, a 44 percent increase from the prior year period reflecting additional sales from Omniquip products of $103.2 million and increased sales from traditional JLG products of $35.1 million. Adjusted to eliminate the impact of integration expense and currency, year-to-date earnings are 17 cents per diluted share versus 3 cents for the prior year. Unadjusted reported earnings on a GAAP basis are 6 cents per diluted share year-to-date versus 11 cents last year.
The company also announced that it 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. Ernst & Young LLP performed agreed-upon procedures with respect to the financial statements for the same periods. According to JLG, its own internal procedures and those performed by Ernst & Young identified no other transactions or circumstances that would require it to alter the scope of the restatement disclosed in February
At that time, the restatement reduced fiscal 2003 fourth-quarter revenue by $8.7 million and cut net income by $1.8 million. The reclassification will result in an increase in revenue and profit recognized over the first three quarters of fiscal 2004 offset in part by the expense associated with the internal inquiry and subsequent restatement.
The company also said it has taken steps to strengthen its control processes and procedures to identify and rectify the accounting error to prevent a recurrence.
“Our management team has taken full responsibility for the error that caused the restatement and subsequent events,” the company said in a statement. “We are committed to ensuring that JLG continues to adhere to the highest principles of business ethics in a manner that preserves and advances our company’s valuable reputation.”