SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to _______
Commission File Number 333-18957
CLARK Material Handling Company
(Exact Name of Registrant as Specified in Its Charter)
Delaware 61-1312827
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
172 Trade Street, Lexington, Kentucky 40511
(Address of Principal Executive Offices) (Zip Code)
(606) 288-1200
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes (X) No ( )
As of September 30, 1999, there were 1,000 shares of the registrant's common
stock, par value $.01 per share, outstanding, all of which were owned by an
affiliate of the registrant.
<PAGE>
CLARK MATERIAL HANDLING COMPANY
INDEX
Page No.
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Consolidated Balance Sheet -
September 30, 1999 and December 31, 1998 2
Consolidated Statement of Operations -
Three Months ended September 30, 1999 and 1998 3
Consolidated Statement of Operations -
Nine Months ended September 30, 1999 and 1998 4
Consolidated Statement of Cash Flows -
Nine Months ended September 30, 1999 and 1998 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
Item 3. Quantitative and Qualitative Disclosures about Market
Risks 12
PART II. OTHER INFORMATION:
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 13
Item 3. Defaults Upon Senior Securities 13
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
CLARK Material Handling Company
Consolidated Balance Sheet
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
------------- -------------
Current assets
<S> <C> <C>
Cash and cash equivalents $ 10,430 $ 9,661
Restricted cash 186 197
Net trade receivables 88,745 68,903
Net inventories (Note 2) 98,811 102,399
Other current assets 7,931 9,609
----------- -----------
Total current assets 206,103 190,769
Long-term assets
Property, plant and equipment-net 64,007 69,877
Goodwill, net of accumulated amortization of $8,300
at September 30, 1999 and $6,069 at December 31,1998 109,757 112,781
Other assets 19,884 24,631
----------- -----------
Total assets $ 399,751 $ 398,058
=========== ===========
Current liabilities
Notes payable $ 50,776 $ 28,922
Current portion of capital lease obligations 3,264 3,313
Trade accounts payable 88,622 75,378
Accrued compensation and benefits 5,856 5,551
Accrued warranties and product liability 15,516 17,384
Other current liabilities 18,688 17,526
----------- -----------
Total current liabilities 182,722 148,074
Non-current liabilities
Senior notes payable 150,000 150,000
Capital lease obligations, less current portion 4,301 4,480
Accrued warranties and product liability 33,073 35,537
Other non-current liabilities 13,932 17,469
----------- -----------
Total liabilities 384,028 355,560
----------- -----------
Commitments and contingencies - -
Redeemable preferred stock 23,469 21,202
----------- -----------
Stockholder's equity (deficit)
Common stock, par value $.01 per share,
1,000 shares authorized, issued and outstanding 1 1
Paid-in-capital 23,940 23,948
Retained earnings (deficit) (25,276) 987
Accumulated other comprehensive income (6,411) (3,640)
----------- -----------
Total stockholder's equity (deficit) (7,746) 21,296
----------- -----------
Total liabilities and stockholder's equity (deficit) $ 399,751 $ 398,058
=========== ===========
See accompanying notes to unaudited financial statements.
</TABLE>
<PAGE>
CLARK Material Handling Company
Consolidated Statement of Operations
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
September 30, September 30,
1999 1998
------------ -----------
<S> <C> <C>
Net sales $ 129,140 $ 134,858
Cost of goods sold 118,273 116,078
----------- -----------
Gross profit 10,867 18,780
Engineering, selling and administrative expenses 19,010 14,287
Income (loss) from operations (8,143) 4,493
Other income (expense):
Interest income 69 211
Interest expense (6,387) (4,309)
Foreign exchange gain (loss) 199 (26)
Other expense, net (100) (303)
----------- -----------
Income (loss) before income taxes (14,362) 66
Provision for income taxes 39 194
----------- -----------
Net income (loss) $ (14,401) $ (128)
=========== ===========
See accompanying notes to unaudited financial statements.
</TABLE>
<PAGE>
CLARK Material Handling Company
Consolidated Statement of Operations
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, September 30,
1999 1998
<S> <C> <C>
Net sales $ 395,442 $ 403,681
Cost of goods sold 350,571 349,036
----------- -----------
Gross profit 44,871 54,645
Engineering, selling and administrative expenses 53,204 39,210
Income (loss) from operations (8,333) 15,435
Other income (expense):
Interest income 490 340
Interest expense (16,247) (11,898)
Foreign exchange gain (loss) 526 (567)
Other income (expense), net 256 (1,169)
----------- -----------
Income (loss) before income taxes (23,308) 2,141
Provision for income taxes 794 756
----------- -----------
Net income (loss) $ (24,102) $ 1,385
=========== ===========
See accompanying notes to unaudited financial statements.
</TABLE>
<PAGE>
CLARK Material Handling Company
Consolidated Statement of Cash Flows
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Nine Months Nine Months
September 30, September 30,
1999 1998
Operating activities:
<S> <C> <C>
Net income (loss) $ (24,102) $ 1,385
Adjustments to reconcile net income (loss)
to cash provided by (used in) operating activities:
Depreciation and amortization 14,312 10,830
Gain on sale of fixed assets 559 -
Changes in operating assets and liabilities:
Restricted cash (6) 137
Trade receivables (22,102) 1,820
Net inventories 1,491 (16,952)
Trade accounts payable 14,507 5,612
Accrued compensation and benefits 490 300
Accrued warranties and product liability (4,218) (6,244)
Other assets and liabilities, net 8,701 3,503
----------- -----------
Net cash (used in) provided by operating activities (10,368) 391
Investing activities:
Business combination - (31,630)
Capital expenditures (8,126) (13,170)
Proceeds from sale of fixed assets 806 -
----------- -----------
Net cash used in investing activities (7,320) (44,800)
----------- -----------
Financing activities:
Issuance (repayment of) notes payable, net 16,908 11,333
Issuance of senior note payable, net of issuance costs 18,872
Issuance of preferred stock, net of issuance costs 18,808
Issuance of other long term debt 1,825 815
----------- -----------
Net cash provided by financing activities 18,773 49,828
----------- -----------
Effect of exchange rate changes on cash and cash
equivalents (316) 245
Net increase in cash and cash equivalents 769 5,664
Cash and cash equivalents at beginning of period 9,661 6,334
----------- -----------
Cash and cash equivalents at end of period $ 10,430 $ 11,998
=========== ===========
See accompanying notes to unaudited financial statements.
</TABLE>
<PAGE>
CLARK Material Handling Company
Notes to Unaudited Financial Statements (in thousands)
1. The accompanying unaudited interim consolidated financial statements
have been prepared in accordance with Rule 10-01 of SEC Regulation
S-X. Consequently, they do not include all the disclosures required
under generally accepted accounting principles for complete financial
statements. However, in the opinion of the management of CLARK
Material Handling Company (the "Company"), the consolidated financial
statements presented herein contain all adjustments (consisting only
of normal recurring adjustments) necessary to present fairly the
financial position, results of operations and cash flows of the
Company and its consolidated subsidiaries. For further information
regarding the Company's accounting policies and the basis of
presentation of the financial statements, refer to the consolidated
financial statements and notes included in the Company's Annual Report
on Form 10-K for the year ended December 31, 1998.
2. Inventories consist of the following:
September 30, December 31,
1999 1998
-------- ---------
Finished equipment $ 19,996 $ 22,104
Replacement parts 32,583 29,967
Work-in-process 8,726 9,482
Raw materials and supplies 37,506 40,846
-------- --------
Net inventories $ 98,811 $102,399
======== ========
3. The Company had a total comprehensive income (loss) of ($15,146) and
$62 for the three months ended September 30, 1999 and 1998,
respectively. The Company had a total comprehensive income (loss) of
($26,873) and $2,038 for the nine months ended September 30, 1999 and
1998, respectively. The difference between the Company's net income
and total comprehensive income (loss) relates to the cumulative
translation adjustment of its foreign subsidiaries.
4. The tables below present information about reported segments for year
to date and the quarters ended and year to date September 30, 1999 and
1998. Reported segments include both internal and external sales.
<TABLE>
<CAPTION>
The
Quarter to date Americas Europe Asia Eliminations Total
- --------------- ---------- ---------- ---------- ---------- ----------
September 30, 1999
<S> <C> <C> <C> <C> <C>
Net sales $ 91,847 $ 29,728 $ 25,747 $(18,182) $ 129,140
Income (loss) before
income taxes $(12,541) $ (868) $ (630) $ (323) $ (14,362)
September 30, 1998
Net sales $ 93,306 $ 36,619 $ 12,543 $ (7,610) $ 134,858
Income (loss) before
income taxes $ 163 $ 725 $ (587) $ (235) $ 66
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
The
Year to date Americas Europe Asia Eliminations Total
- --------------- ---------- ---------- ---------- ---------- ----------
September 30, 1999
<S> <C> <C> <C> <C> <C>
Net sales $ 278,892 $ 93,069 $ 69,513 $ (46,032) $ 395,442
Income (loss) before
income taxes $ (22,754) $ (3) $ 1,005 $ (1,556) $ (23,308)
September 30, 1998
Net sales $ 301,648 $ 103,612 $ 13,290 $ (14,869) $ 403,681
Income (loss) before
income taxes $ 1,320 $ 1,295 $ (1,018) $ (212) $ 1,385
</TABLE>
5. On September 30, 1999 the Company sold substantially all the assets of
Hydrolectric Lift Trucks ("HLT"), which manufactured masts and
components of masts, for its book value of $3.9 million. Assets sold
included inventory, equipment and tooling. Operating losses for the
nine months ended September 30, 1999 were $1.0 million.
6. Certain reclassifications of prior period amounts have been made to
conform with the current year presentation.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
General
The Company manufactures products in the U.S., Canada, Germany, and Korea and
sells products worldwide. Sales of products manufactured and sold by the Company
have historically been subject to cyclical variation due primarily to changes in
general economic conditions. Management believes that while there can be no
assurance as to the magnitude or timing of any economic downturn, the fact that
its products are sold on a global basis serves to mitigate the risks associated
with regional economic downturns. In addition, the Company further believes its
extensive number of installed units throughout the world will continue to
reflect itself in significant aftermarket parts sales which will also serve to
dampen the effect of regional cyclical economic downturns. During the nine
months of 1999, 43.5% of the Company's gross margin (39.4% in 1998) resulted
from aftermarket parts sales.
The Company started implementation of a new Enterprise Resource Planning (ERP)
system in its North American operation in the fourth quarter of 1998. The
transition from that operation's legacy systems was difficult and adversely
impacted financial results beginning with 1998 fourth quarter continuing through
the third quarter of 1999. In November, 1998, the Company engaged a team of
consultants from the firm that developed the software used in the ERP system to
assist in restarting the system. The restart occurred in February, 1999.
Although considered a success by the Company, the restart resulted in a
continuation of problems but to a greatly reduced extent from those experienced
prior to the restart. The number and significance of problems associated with
the ERP system has continued to diminish. The team of consultants was disengaged
as of June 18, 1999. In the nine month period ending September 30, 1999, the
Company spent approximately $2.4 million for services and consultants providing
assistance in start up and problem resolution associated
<PAGE>
with the ERP system. The Company believes that the ERP implementation resulted
in manufacturing inefficiencies and significant amounts of other non-recurring
costs, and estimates that the aggregate impact thus far is $8.5 million.
The ERP system was successfully launched during the second quarter of 1999 in
the Company's subsidiary in Europe. Installation in the Company's subsidiary in
Asia has been launched in November 1999.
Results of Operations
- ---------------------
Three months ended September 30, 1999, compared to the three months ended
September 30, 1998:
Net Sales
- ---------
Net sales were $129.1 million for the three months ended September 30, 1999,
compared to $134.9 million as the same period one year ago. Machine and other
sales decreased 6.0% while parts sales increased 3.5% from the same period one
year ago. The lower sales in Europe and North America were a result of a
softening of order rates over the past few months.
Gross Profit
- ------------
Gross profit decreased $7.9 million to $10.9 million in the third quarter of
1999 as compared to $18.8 million in the third quarter of 1998. The company
subsidiary in Asia added $2.3 million of gross profit for the three months ended
September 30, 1999. Increased parts sales further increased gross profit by $0.5
million. Offsetting these increases were the unfavorable effect of reduced sales
revenue in North America and Europe, lower margins and reasons discussed above.
Engineering, Selling and Administrative Expense
- -----------------------------------------------
Engineering, selling and administrative expense increased $4.7 million to $19.0
million for the three months ended September 30, 1999 from $14.3 million during
the same period of 1998. Included in this increase is $1.8 million for CLARK
Asia which reflected the acquisition which occurred during the third quarter of
1998 and the acquisition of Company dealerships which accounted for an
additional $1.1 million. Also included in these costs is $0.8 million of
consulting costs related to the ERP implementation. As a percent of sales,
engineering, selling, and administrative expense was 14.7% and 10.6% for the
same period in 1999 and 1998 respectively.
Income (Loss) from Operations
- -----------------------------
Loss from operations was $8.1 million for the three months ended September 30,
1999 compared to income of $4.5 million for the same period in 1998 due to the
reasons discussed above.
Interest and Other Expense
- --------------------------
Net interest expense of the Company was $6.3 million for the three months ended
September 30, 1999 compared to $4.1 million during the three months ended
September 30, 1998. The increase reflects higher average debt for the period.
Changes in foreign exchange rates resulted in $0.1 million of income for the
three months ended September 30, 1999 compared to $0.03 million of expense for
the same period one year ago.
<PAGE>
Income Taxes
- ------------
The provision for income taxes was $0.1 million during the three months ended
September 30, 1999 compared to $0.2 million during the three months ended
September 30, 1998.
Net Income (Loss)
- ----------------
The Company reported a net loss of $14.4 million during the three months ended
September 30, 1999 compared to net loss of $0.1 million for the same period in
1998.
Results of Operations
- ---------------------
Nine months ended September 30, 1999, compared to the nine months ended
September 30, 1998:
Net Sales
- ---------
Net sales were $395.4 million for the nine months ended September 30, 1999, a
decrease of $8.2 million or 2.0% from $403.7 million for the same period in
1998. Machine and other sales decreased 4.5%. While machine and other sales
increased as a result of including CLARK Asia sales for the entire period ending
September 30, 1999, this increase was offset by reduced sales of North American
and European manufactured products. Parts sales increased 7.4% over the same
period last year.
Gross Profit
- ------------
Gross profit decreased 17.9% or $9.8 million to $44.9 million in the first nine
months of 1999 compared to $54.6 million in the first nine months of 1998. The
inclusion for the entire nine month period for CLARK Asia contributed increased
gross margin which was offset as a result of decreased sales in the U.S. and
Europe as well as for reasons discussed above. As a percentage of sales, gross
profits were 11.3% for the nine months ended September 30, 1999 compared to
13.5% for the same period in the prior year.
Engineering, Selling and Administrative Expense
- -----------------------------------------------
Engineering, selling and administrative expense increased $14.0 million to $53.2
million for the nine months ended September 30, 1999 from $39.2 million during
the same period of 1998. As a percent of sales, engineering, selling and
administrative expense was 13.4% and 9.7% for the same period in 1999 and 1998
respectively. The acquisition of CLARK Asia accounted for $7.1 million of the
increase and the acquisition of the Company dealerships accounted for an
additional $3.9 million. Costs associated with introduction of the ERP system
and higher expenses at the other subsidiaries accounted for most of the
remaining increase.
Income from Operations
- ----------------------
Income from operations decreased $23.7 million to a loss of $8.3 million for the
nine months ended September 30, 1999 compared to income of $15.4 million for the
same period in 1998 due to the reasons discussed above.
<PAGE>
Interest and Other Expense
- --------------------------
Net interest expense of the Company was $15.8 million for the nine months ended
September 30, 1999 compared to $11.6% million for the same period one year ago.
The increase reflects higher average debt for the period.
Changes in foreign exchange rates resulted in $0.5 million of income for the
three months ended September 30, 1999 compared to expense of $0.5 million for
the nine month period ending September 30, 1998.
Income Taxes
- ------------
The provision for income taxes was $0.8 million during the nine months ended
September 30, 1999 compared to $0.8 million during the nine months ended
September 30, 1998.
Net Income
- ----------
The Company reported a net loss of $24.1 million during the nine months ended
September 30, 1999 compared to net income of $1.4 million for the same period in
1998.
Backlog
- -------
The Company's backlog of orders at September 30, 1999 was $86.8 million, down
9.4% from September 30, 1998, when the backlog of orders was $95.8 million.
The total backlog of $86.8 million reflects a 3.4% decrease from June 30, 1999,
when the backlog of orders was $89.9 million. The current backlog does reflect
some softening of order rates for units which has occurred in the U.S. and
Europe over the first nine months of this year. The current backlog is
considered at normal levels and is sufficient for operating the Company at
current levels of production. Substantially all of the Company's backlog of
orders are expected to be filled within one year, although there can be no
assurance that all such orders will be filled within that time period. The
cancellation or delay of certain orders could have a material adverse effect on
the Company.
Capital Resources, Liquidity and Financial Condition
- ----------------------------------------------------
The Company's overall financial condition was adversely effected during the
first nine months as total stockholders' equity decreased from $21.3 million at
December 31, 1998 to a deficit of $7.7 million at September 30, 1999. Working
capital decreased from $42.7 million at December 31, 1998 to $21.7 million at
September 30, 1999. The reduction in net worth is due primarily to net losses in
the first nine months of 1999 amounting to $24.1 million. Net interest expense
accounted for $15.8 million of the net loss. The working capital decrease was
caused by an increase in notes payable and accounts payable offset by an
increase in accounts receivables which was used to fund operating losses.
Management believes operations have now stabilized, and working capital should
improve as the Company is better able to manage inventory and accounts
receivable now that ERP problems are largely under control. Capital expenditures
totaled $8.1 million for the nine months ended September 30, 1999. $4.4 million
of these expenditure occurred in CLARK Asia due to refurbishing an existing
building providing a new manufacturing facility for that business unit, and
implementation of new ERP system.
The Company had $10.4 million cash on hand as of September 30, 1999 as compared
to $9.7 million at December 31, 1998. At September 30, 1999, the Company had
<PAGE>
$8.8 million undrawn from its $30.0 million U.S. revolving credit facility. In
addition, CLARK Europe has a working capital credit line amounting to $10
million. On September 27, 1999 the U.S. revolving credit facility was renewed
for one year with an expiration date of November 27, 2000. At September 30, 1999
the Company had borrowing against its lines in Germany and Canada of $11.5
million. Management plans to restrict the use of cash for capital expenditures
during the final three months of 1999 and believes existing cash levels and
existing credit facilities will be sufficient to meet the Company's ordinary
operating needs for the next twelve months.
The Company's operating results are subject to fluctuations in foreign currency
exchange rates as well as the currency translation of its foreign operations
into U.S. dollars. The Company manufactures products in the U.S., Canada, Korea
and Germany and exports products to more than 80 countries worldwide. The
Company's foreign sales, are subject to exchange rate volatility.
The Company has exposure to fluctuations in exchange rates primarily related to
the Canadian dollar, German Mark and Korean won. The Company hedges its exposure
to Korean won to the extent the exposure relates to the import to the U.S. of
finished units purchased from Korea. Historically, the Company has not otherwise
hedged its foreign currency risk.
Year 2000
The Company is aware of the issues associated with the programming code in
existing computer systems as the millennium approaches. The "year 2000" problem
is pervasive and complex as virtually every computer operation will be affected
in some way by the rollover of the two digit year value to 00. The issue is
whether computer systems will properly recognize date-sensitive information when
the year changes to 2000. Systems that do not recognize such information could
generate erroneous data or cause a system to fail.
The Company is utilizing both internal and external resources with respect to
its year 2000 issues. With regard to its information technology ("IT") systems,
CLARK is in the process of installing new software to provide improved
operational and financial functionality at each of its worldwide locations. This
new software is year 2000 compliant and "Euro" compliant. The installation was
substantially completed in the North American manufacturing operation during the
first quarter of 1999, and in the European manufacturing operation during the
second quarter of 1999. The Company began installation of year 2000 compliant
software at CLARK Asia facilities in the second quarter of 1999 and installation
should be completed in the fourth quarter of 1999. The installation of the new
software by CLARK is a result of a strategic plan to upgrade its company-wide
computer systems which pre-dated the Company's efforts to make its IT systems
year 2000 compliant. Therefore, the Company has not incurred and does not
anticipate incurring any material costs (currently estimated at less than $0.4
million) specifically related to year 2000 issues that are in addition to the
costs associated with its overall computer system upgrade.
CLARK does not believe that it has any material year 2000 issues with regard to
its non-IT systems. The Company's products employ chips and microprocessors
which use interval timers as opposed to real-time clocks and therefore should
not be affected by the year 2000 rollover. In addition, CLARK does not utilize
computer controlled machines in its factory production, thereby minimizing
potential year 2000 problem relating to its manufacturing equipment.
The Company has ongoing business relationships with many suppliers, dealers, and
other parties, each of which may have their own year 2000 issues. CLARK has made
substantial progress in making contact with these third parties with which it
has a material relationship in order to assess whether the Company faces risks
relating to third party year 2000 problems. The Company continues to assess its
<PAGE>
exposure to third party risk. Based on these contacts it appears that these
third parties are taking appropriate actions to safeguard their computer
systems.
Management can not at this time predict with any certainty CLARK's most likely
worst case scenario relating to the year 2000 problem. The Company has been and
continues to perform test-runs at its facilities following installation of its
new 2000 compliant software. No material problems have been identified to date.
If a year 2000 problem is identified during these test-runs, the Company intends
to immediately seek correction of the problem from its software vendor at no
cost to the Company and will develop other contingency plans responsive to the
facts and circumstances that exist at that time.
Euro Conversion
The Euro was introduced on January 1, 1999, at which time the eleven
participating European Monetary Union member countries established fixed
conversion rates between their existing currencies (legacy currencies) and the
Euro. During the three-and-a-half year transition period following its
introduction, countries will be allowed to transact business in the Euro and in
their own currencies. On July 1, 2002, the Euro will be the one and only
official currency in European Union countries that are participating in the
conversion.
The Company's European operations have established plans to address the issues
raised by the Euro currency conversion and are cognizant of the potential
business implications of the conversion. CLARK is in the process of installing
new software in each of its worldwide locations that will be able to process
Euro currency transactions. The Company does not expect the conversion costs to
be material. However, due to numerous uncertainties, the Company cannot
reasonably estimate the effect one common currency will have on pricing and the
resulting impact, if any, on its results of operations, financial condition or
cash flow.
Forward Looking Statements
From time to time, the Company makes oral and written statements that may
constitute "forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995 (the "Act") or by the SEC in its rules,
regulations and releases. The Company desires to take advantage of the "safe
harbor" provisions in the Act for forward-looking statements made from time to
time, including, but not limited to, the forward-looking statements relating to
the future performance of the Company contained in Management's Discussion and
Analysis, and Notes to Unaudited Financial Statements and other statements made
in this Form 10-Q and in other filings with the SEC. These forward-looking
statements are made based upon management's expectations and beliefs concerning
future events affecting the Company and therefore involve a number of risks and
uncertainties. Management cautions that forward-looking statements are not
guarantees and that actual results could differ materially from those expressed
or implied in the forward-looking statements.
Item 3. Quantitative and Qualitative Disclosures about Market Risks
There have been no material changes in this area during the three months or nine
months ended September 30, 1999.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
Except for the legal proceedings reported in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 1998 for which there have since been
no material developments, the Company believes there is no outstanding
litigation which could have a material impact on its financial position or
results of operations.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
--------
Exhibit No. Description
----------- -----------
27 Financial Data Schedule
(b) Reports on Form 8-K
-------------------
No reports on Form 8-K were filed by the Company during the quarter
ended September 30, 1999.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CLARK MATERIAL HANDLING COMPANY
Date: November 15, 1999 By: /s/ Douglas P. Bennett
----------------------------
Douglas P. Bennett
Vice President Finance and CFO
(Principal Financial and Accounting Officer)
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Dec-31-1999
<PERIOD-START> Jan-01-1999
<PERIOD-END> Sep-30-1999
<CASH> 10,430
<SECURITIES> 0
<RECEIVABLES> 95,276
<ALLOWANCES> (6,531)
<INVENTORY> 98,811
<CURRENT-ASSETS> 206,103
<PP&E> 89,055
<DEPRECIATION> (25,048)
<TOTAL-ASSETS> 399,751
<CURRENT-LIABILITIES> 182,722
<BONDS> 157,565
0
0
<COMMON> 1
<OTHER-SE> 23,940
<TOTAL-LIABILITY-AND-EQUITY> 399,751
<SALES> 395,442
<TOTAL-REVENUES> 395,442
<CGS> 350,571
<TOTAL-COSTS> 350,571
<OTHER-EXPENSES> 53,204
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</TABLE>
