UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
_______________________
Date of Report
(Date of earliest
event reported): May 6, 1998
Oshkosh Truck Corporation
(Exact name of registrant as specified in its charter)
Wisconsin 0-13886 39-0520270
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
P. O. Box 2566, Oshkosh, Wisconsin 54903-2556
(Address of principal executive offices, including zip code)
(414) 235-9151
(Registrant's telephone number)
Item 5. Other Events.
On May 6, 1998, Oshkosh Truck Corporation (the "Company")
issued a press release announcing the Company's results for the second
quarter ended March 31, 1998. A copy of the Company's press release dated
May 6, 1998 is filed herewith as Exhibit 99.
Item 7. Financial Statements and Exhibits.
(a) Exhibits.
The exhibit listed in the accompanying Exhibit Index is filed as
part of this Current Report on Form 8-K.
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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.
OSHKOSH TRUCK CORPORATION
Date: May 6, 1998 By: /s/ Charles L. Szews
Charles L. Szews
Executive Vice President and Chief
Financial Officer
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OSHKOSH TRUCK CORPORATION
EXHIBIT INDEX TO FORM 8-K
Dated May 6, 1998
Exhibit
No. Description
(99) Press Release of Oshkosh Truck Corporation dated May 6, 1998.
FOR IMMEDIATE RELEASE
For more information, contact: Charles L. Szews
Executive Vice President and
Chief Financial Officer
(920) 235-9151, Ext. 2332
OSHKOSH TRUCK NET INCOME INCREASES 34%
OSHKOSH, WIS., May 6, 1998 Oshkosh Truck Corporation (NASDAQ-OTRKB)
today reported that net income increased 34% to $3.3 million, or $.39 per
share, for the second quarter of fiscal 1998 on sales of $218 million.
This compares to net income of $2.5 million, or $.28 per share, for the
second quarter of fiscal 1997 on sales of $170 million. Excluding an
extraordinary charge associated with the refinancing of debt to acquire
McNeilus Companies, Inc. ("McNeilus"), net income would have been $4.1
million, an increase of 64%.
Results for the second quarter include one month of sales and
earnings of McNeilus which was acquired on February 26, 1998. McNeilus
sales for March totaled $38 million, reflecting strong growth in refuse
body sales.
"We are very pleased with the performance of McNeilus following its
acquisition," stated Robert G. Bohn, President and Chief Executive
Officer. "McNeilus is one of the premier capital goods companies in
America. This acquisition provides strong growth platforms in the refuse
body and concrete mixer markets and further opportunities to leverage our
purchasing power and manufacturing expertise across our company. As
announced previously, we have set a target of achieving $5 to $7 million
in acquisition synergies. Our focus on debt reduction has already
permitted us to repay $30 million of debt incurred to acquire McNeilus,"
stated Bohn.
"The defense business had a strong quarter," said Bohn. "Testing
under the Medium Tactical Truck Remanufacturing ("MTTR") contract was
completed on schedule in mid-April. We will be bidding the contract in
late summer."
"The fire apparatus business of the Company's Pierce Manufacturing
Inc. ("Pierce") subsidiary received very strong sales orders during the
quarter for delivery in the second half of fiscal 1998 and fiscal 1999,"
stated Bohn. "The re-design of our Dash and Lance fire apparatus chassis
and the introduction of the Nova Quintech aerial devices are being
received very favorably by our customers."
Operating income rose 52% to $11.2 million in the second quarter of
fiscal 1998 compared to $7.4 million in the second quarter of fiscal 1997.
The increase in operating income reflects the results of McNeilus for
March and lower engineering and administrative costs in the Company's
defense business. Net interest expense increased to $4.3 million in the
second quarter of fiscal 1998 from $3.0 million in the second quarter of
fiscal 1997 as a result of additional borrowings to acquire McNeilus.
Six Month Results
The Company reported that net income increased 58% to $6.5 million,
or $.77 per share, for the first six months of fiscal 1998 on sales of
$370 million compared to $4.1 million, or $.47 per share, for the first
six months of fiscal 1997 on sales of $321 million. Excluding the
extraordinary charge, net income would have been $7.2 million, an increase
of 76%.
Operating income rose 34% to $18.6 million in the first six months of
fiscal 1998 compared to $13.8 million in the first six months of fiscal
1997. The increase in earnings reflects the results of McNeilus for March
and lower engineering and administrative costs in the Company's defense
business.
Oshkosh Truck Corporation serves fire and emergency, defense, and
commercial markets with specialty trucks and truck bodies marketed under
the Oshkosh, Pierce and McNeilus brand names. Oshkosh's products are
valued worldwide by fire and emergency units, defense forces, municipal
and airport support services, construction and refuse businesses where
high quality, superior performance, rugged reliability, and long-term
value are paramount.
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OSHKOSH TRUCK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
1998 1997 1998 1997
(In thousands, except per share amounts)
Net sales $217,836 $170,465 $369,637 $320,785
Cost of sales 187,908 147,597 317,402 278,334
------- ------- ------- -------
Gross income 29,928 22,868 52,235 42,451
Operating expenses:
Selling, general and
administrative 14,800 12,616 26,476 22,641
Engineering, research &
development 2,200 1,753 4,343 3,746
Amortization of goodwill and
other intangibles 1,712 1,103 2,838 2,235
------- ------- ------- -------
Total operating expenses 18,712 15,472 33,657 28,622
------- ------- ------- -------
Income from operations 11,216 7,396 18,578 13,829
Other income (expense):
Interest expense (4,687) (3,165) (7,191) (6,723)
Interest income 369 148 534 354
Miscellaneous, net (235) (60) (163) (69)
------- ------- ------- -------
(4,553) (3,077) (6,820) (6,438)
------- ------- ------- -------
Income from operations before
income taxes, equity in earnings
of unconsolidated partnership
and extraordinary item 6,663 4,319 11,758 7,391
Provision for income taxes 2,784 1,845 4,739 3,293
------- ------- ------- -------
3,879 2,474 7,019 4,098
Equity in earnings of unconsolidated
partnership, net of income taxes
of $113 177 0 177 0
------- ------- ------- -------
Income before extraordinary item 4,056 2,474 7,196 4,098
Extraordinary charge for early
retirement of debt, net of
income tax benefit of $469 (735) 0 (735) 0
------- ------- ------- -------
Net income $ 3,321 $ 2,474 $ 6,461 $ 4,098
======= ======= ======= =======
Earnings per share:
Income before extraordinary
item $ 0.48 $ 0.28 $ 0.86 $ 0.47
Extraordinary item (0.09) 0.00 (0.09) 0.00
------- ------- ------- -------
Net income per share $ 0.39 $ 0.28 $ 0.77 $ 0.47
======= ======= ======= =======
Earnings per share assuming
dilution:
Income before extraordinary
item $ 0.48 $ 0.28 $ 0.85 $ 0.47
Extraordinary item (0.09) 0.00 (0.09) 0.00
------- ------- ------- -------
Net income per share $ 0.39 $ 0.28 $ 0.76 $ 0.47
======= ======= ======= =======
Cash dividends:
Class A Common Stock $0.10875 $0.10875 $0.21750 $0.21750
Common Stock $0.12500 $0.12500 $0.25000 $0.25000
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OSHKOSH TRUCK CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
Mar. 31, Sept. 30,
1998 1997
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 10,555 $ 23,219
Receivables, net 81,773 81,235
Inventories 166,878 76,497
Prepaid expenses 3,559 3,405
Refundable income taxes 4,057 -
Deferred income taxes 8,112 9,479
------- -------
Total current assets 274,934 193,835
Deferred charges 1,069 1,067
Other long-term assets 15,659 6,660
Investment in unconsolidated partnership 12,694 -
Property, plant and equipment:
Land 8,790 7,172
Buildings 65,764 42,220
Machinery and equipment 87,452 78,270
------- -------
162,006 127,662
Less accumulated depreciation (75,700) (72,174)
------- -------
Net property, plant and equipment 86,306 55,488
Goodwill and other intangible assets, net 327,895 163,344
------- -------
Total assets $718,557 $420,394
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 60,147 $ 48,220
Floor plan notes payable 24,960 -
Customer advances 48,847 30,124
Payroll-related obligations 20,236 15,157
Accrued warranty 13,935 12,320
Income taxes - 963
Other current liabilities 28,277 21,938
Current maturities of long-term debt 11,500 15,000
------- -------
Total current liabilities 207,902 143,722
Long-term debt 316,316 120,000
Postretirement benefit obligations 10,462 10,147
Other long-term liabilities 4,695 3,173
Deferred income taxes 53,081 22,452
Shareholders' equity:
Class A Common Stock 4 4
Common Stock 89 89
Paid-in capital 14,238 13,591
Retained earnings 124,448 120,085
------- -------
138,779 133,769
Cost of Common Stock in treasury (12,678) (12,869)
------- -------
Total shareholders' equity 126,101 120,900
------- -------
Total liabilities and shareholders' equity $718,557 $420,394
======= =======
<PAGE>
OSHKOSH TRUCK CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
March 31,
1998 1997
(In thousands)
Operating activities:
Net income $ 6,461 $ 4,098
Depreciation and amortization 7,398 7,045
Deferred income taxes 3,799 (355)
Early retirement of debt 1,204 -
Equity in earnings of unconsolidated
partnership (290) -
Loss on disposal of property, plant
and equipment 49 3
Changes in operating assets and
liabilities 10,429 4,035
------- -------
Net cash provided from operating
activities 29,050 14,826
Investing activities:
Acquisition of businesses, net of
cash acquired (217,954) -
Additions to property, plant and
equipment (4,355) (2,907)
Proceeds from sale of property,
plant and equipment 119 314
(Increase) decrease in other long-term
assets 1,868 (135)
------- -------
Net cash used for investing
activities (220,322) (2,728)
Net cash used for discontinued operations (811) (695)
Financing activities:
Net borrowings (repayments) of
long-term debt 189,963 (9,354)
Debt issuance costs (8,479) -
Purchase of Common Stock and proceeds
from exercise of stock options, net 18 85
Dividends paid (2,083) (2,148)
------- -------
Net cash provided from (used
for) financing activities 179,419 (11,417)
------- -------
Decrease in cash and cash equivalents (12,664) (14)
Cash and cash equivalents at beginning
of period 23,219 127
------- -------
Cash and cash equivalents at end
of period $ 10,555 $ 113
======= =======
