SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 27, 1997
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 0-18110
GEHL COMPANY
(Exact name of registrant as specified in its charter)
Wisconsin 39-0300430
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
143 Water Street, West Bend, WI 53095
(Address of principal executive office) (zip code)
(414) 334-9461
(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
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at September 27, 1997
Common Stock, $.10 Par Value 6,199,055
<PAGE>
GEHL COMPANY
FORM 10-Q
September 27, 1997
REPORT INDEX
Page No.
PART I. - FINANCIAL INFORMATION:
Condensed Consolidated Statements of Income for the
Three- and Nine-Month Periods Ended September 27, 1997
and September 28, 1996 . . . . . . . . . . . . . . . 3
Condensed Consolidated Balance Sheets at September 27, 1997,
December 31, 1996 and September 28, 1996 . . . . . . 4
Condensed Consolidated Statements of Cash Flows for the
Nine-Month Periods Ended September 27, 1997 and
September 28, 1996 . . . . . . . . . . . . . . . . . 5
Notes to Condensed Consolidated Financial Statements . 6
Management's Discussion and Analysis of Results of Operations
and Financial Condition . . . . . . . . . . . 9
PART II. - OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K . . . . . . 13
SIGNATURES . 14
<PAGE>
PART I - FINANCIAL INFORMATION
<TABLE>
GEHL COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data; unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
NET SALES $ 48,140 $ 40,550 $ 143,407 $ 124,189
Cost of goods sold 33,333 28,298 100,070 87,569
------- ------- -------- -------
GROSS PROFIT 14,807 12,252 43,337 36,620
Selling, general and
administrative expenses 8,885 7,726 26,668 24,367
------- ------- ------- -------
INCOME FROM OPERATIONS 5,922 4,526 16,669 12,253
Interest expense (412) (827) (1,339) (2,924)
Interest income 378 385 1,039 1,193
Other expense, net (493) (587) (952) (1,048)
------- ------- ------- --------
INCOME BEFORE INCOME TAXES 5,395 3,497 15,417 9,474
Income tax provision 1,942 876 5,550 2,024
------- ------- ------- --------
NET INCOME $3,453 $2,621 $9,867 $7,450
======= ======= ======= ========
EARNINGS PER SHARE $ .52 $ .42 $ 1.52 $ 1.20
</TABLE>
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
GEHL COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<CAPTION>
September 27, December 31, September 28,
1997 1996 1996
------------- ------------ ------------
ASSETS (Unaudited) (Unaudited)
<S> <C> <C> <C>
Cash $ 3,204 $ 4,208 $ 5,205
Accounts receivable-net 63,277 55,141 65,995
Finance contracts receivable-net 6,507 5,098 5,887
Inventories 16,877 18,642 16,238
Deferred tax asset 4,112 5,035 4,397
Prepaid expenses and other assets 1,233 1,624 1,184
------- ------- -------
Total Current Assets 95,210 89,748 98,906
------- ------- -------
Property, plant and equipment-net 25,179 21,678 20,642
Finance contracts receivable-
net, non-current 3,904 3,063 3,579
Other assets 5,633 5,636 5,783
------- ------- -------
TOTAL ASSETS $ 129,926 $ 120,125 $ 128,910
======== ======= =======
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current portion of long-term
debt obligations $ 193 $ 178 $ 174
Accounts payable 18,197 14,384 14,571
Accrued liabilities 20,560 17,574 18,300
------- ------- -------
Total Current Liabilities 38,950 32,136 33,045
------- ------- -------
Line of credit facility 3,423 10,454 21,333
Long-term debt obligations 8,593 8,740 8,786
Other long-term liabilities 1,722 1,594 1,666
Deferred income taxes 2,478 2,369 1,425
------- ------- -------
Total Long-Term Liabilities 16,216 23,157 33,210
------- ------- -------
Common stock, $.10 par value
25,000,000 shares authorized,
6,199,055, 6,158,720 and 6,152,788
shares outstanding, respectively 620 616 615
Preferred stock, $.10 par value,
2,000,000 shares authorized,
250,000 shares designated as Series A
Preferred Stock, no shares issued - - -
Capital in excess of par 26,212 26,155 26,113
Retained earnings 47,928 38,061 35,927
------- ------- -------
Total Shareholders' Equity 74,760 64,832 62,655
------- ------- -------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 129,926 $ 120,125 $ 128,910
======== ======== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
GEHL COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands; unaudited)
<CAPTION>
Nine Months Ended
September 27, September 28,
1997 1996
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net Income $ 9,867 $ 7,450
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 2,087 2,017
Increase in finance contracts receivable (28,693) (30,053)
Proceeds from sales of finance contracts 25,462 26,830
Cost of sales of finance contracts 981 973
Net changes in remaining working capital items 1,641 12,952
-------- ---------
Net cash provided by operating activities 11,345 20,169
-------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment additions, net (5,519) (2,239)
Other assets 144 520
-------- ---------
Net cash used for investing activities (5,375) (1,719)
-------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in long-term debt obligations 128 533
Decrease in long-term liabilities (132) (55)
Repayments of credit facility (7,031) (16,515)
Treasury stock repurchases - (535)
Proceeds from issuance of common stock 254 61
Purchase of warrant (193) -
-------- ----------
Net cash used for financing activities (6,974) (16,511)
Net (decrease) increase in cash (1,004) 1,939
Cash, beginning of period 4,208 3,266
-------- ----------
Cash, end of period $ 3,204 $ 5,205
======== ==========
Supplemental disclosure of cash flow
information:
Cash paid for the following:
Interest $ 1,319 $ 2,920
Income Taxes $ 3,820 $ 1,810
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
GEHL COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 27, 1997
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The condensed consolidated financial statements included herein have
been prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed
or omitted pursuant to such rules and regulations, although management
believes that the disclosures are adequate to make the information presented
not misleading.
In the opinion of management, the information furnished for the three-
and nine-month periods ended September 27, 1997 and September 28, 1996
includes all adjustments, consisting only of normal recurring accruals,
necessary for a fair presentation of the results of operations and financial
position of the Company. The results of operations for the nine months ended
September 27, 1997 are not necessarily indicative of the results to be
expected for the entire year.
It is suggested that these interim financial statements be read in
conjunction with the financial statements and notes thereto, included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1996 as
filed with the Securities and Exchange Commission. Certain reclassifications
have been made in the prior year condensed consolidated financial statements
to conform with the current year presentation.
NOTE 2 - EARNINGS PER SHARE
Earnings per share is computed by dividing net income by the weighted
average number of common stock and, if applicable, common stock equivalents
which would arise from the exercise of stock options and warrants. The
weighted average number of shares used in the computations was 6,627,394 and
6,221,449 for the three months ended September 27, 1997 and September 28,
1996, respectively, and 6,503,683 and 6,217,549 for the nine months ended
September 27, 1997 and September 28, 1996, respectively.
NOTE 3 - INCOME TAXES
The income tax provision is determined by applying an estimated annual
effective income tax rate to income before income taxes. The estimated annual
effective income tax rate is based on the most recent annualized forecast of
pretax income, permanent book/tax differences and tax credits.
NOTE 4 - INVENTORIES
If all of the Company's inventories had been valued on a current cost
basis, which approximated FIFO value, estimated inventories by major
classification would have been as follows (in thousands):
September 27, December 31, September 28,
1997 1996 1996
Raw materials and supplies $ 4,253 $ 3,547 $ 3,683
Work-in process 9,236 9,120 8,152
Finished machines and parts 22,183 24,770 23,276
-------- -------- --------
Total current cost value 35,672 37,437 35,111
Adjustment to LIFO basis (18,795) (18,795) (18,873)
-------- -------- --------
$ 16,877 $ 18,642 $ 16,238
======== ======== ========
NOTE 5 - SHAREHOLDER RIGHTS PLAN
On May 28, 1997, the Board of Directors of the Company adopted a
Shareholder Rights Plan and declared a rights dividend of one preferred share
purchase right (Right) for each share of common stock outstanding on June 16,
1997, and provided that one Right would be issued with each share of common
stock thereafter issued. The Shareholder Rights Plan provides that in the
event a person or group acquires or seeks to acquire 15% or more of the
outstanding common stock of the Company, the Rights, subject to certain
limitations, will become exercisable. Each Right once exercisable initially
entitles the holder thereof (other than the acquiring person whose rights are
cancelled) to purchase from the Company one one-hundredth of a share of Series
A preferred stock at an initial exercise price of $55 per one one-hundredth of
a share (subject to adjustment), or, upon the occurrence of certain events,
common stock of the Company or common stock of an "acquiring company" having a
market value equivalent to two times the exercise price. Subject to certain
conditions, the Rights are redeemable by the Board of Directors for $.01 per
Right and are exchangeable for shares of common stock. The Rights have no
voting power and expire on May 28, 2007.
NOTE 6 - ACCOUNTING PRONOUNCEMENTS
The Financial Accounting Standards Board (FASB) has issued Statement of
Financial Accounting Standards No. 128, "Earnings per Share" (SFAS 128). SFAS
128 replaces primary EPS with basic EPS, which excludes dilution, and requires
presentation of both basic and diluted EPS on the face of the income
statement. Diluted EPS is computed similarly to the current fully diluted
EPS. SFAS 128 is effective for financial statements issued for periods ending
after December 15, 1997, and requires restatement of all prior-period EPS data
presented. The adoption of this statement is not expected to materially
affect either future or prior-period EPS.
The FASB has also issued SFAS No. 130, "Reporting Comprehensive Income"
and SFAS No. 131, "Disclosures about Segments of an Enterprise and Related
Information". These statements are both effective for periods beginning after
December 15, 1997. The adoption of these statements is not expected to affect
the Company's financial condition or results of operations as they are
disclosure only pronouncements.
NOTE 7 - SUBSEQUENT EVENTS
On October 2, 1997, the Company acquired from Brunel Holdings, plc
("Brunel Holdings") all of the issued and outstanding shares of capital stock
of Brunel America Inc. ("Brunel America"). The total cash consideration paid
by the Company at the closing of the acquisition was $27,700,000.
The acquisition was consummated in accordance with the terms of a Stock
Purchase Agreement, dated September 12, 1997, by and between the Company and
Brunel Holdings. In connection with the acquisition, the Company (a) acquired
the Brunel America stock from Brunel Holdings for $26,700,000; and (b) entered
into a five (5) year Noncompetition Agreement with Brunel Holdings pursuant to
which the Company paid to Brunel Holdings the sum of $1,000,000. The purchase
price is subject to a post-closing net worth adjustment.
To provide financing for the acquisition, the Company borrowed
$27,700,000 under its existing credit facility.
In connection with the acquisition, the Company, through Brunel America,
acquired all of the issued and outstanding shares of capital stock of the
following direct and indirect subsidiaries of Brunel America: Mustang
America, Inc.; Mustang Manufacturing Company, Inc.; Mustang Finance Inc.; and
Mustang International, Inc. (collectively referred to as the "Mustang
Subsidiaries").
The Mustang Subsidiaries design, manufacture and distribute skid steer
loaders and related attachments. The Company intends to continue to operate
the business of the Mustang Subsidiaries at their present headquarters and
manufacturing location in Owatonna, Minnesota and to conduct the business of
the Mustang Subsidiaries in substantially the same manner as such business had
been conducted prior to the acquisition.
The acquisition was accounted for as a purchase. Since the acquisition
was completed after the end of the 1997 third quarter, the results for such
quarter do not include any results of Brunel America or the Mustang
Subsidiaries.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION
Results of Operations
Three Months Ended September 27, 1997 Compared to Three Months Ended September
28, 1996
Net sales for the third quarter of 1997 of $48.1 million were 19% higher
than the $40.6 million of net sales in the comparable period of 1996. Gehl
Construction's net sales increased 32% to $24.2 million in the third quarter
of 1997 from $18.5 million in the third quarter of 1996. This increase
resulted primarily from continued strong demand for skid steer loaders and
rough-terrain telescopic forklifts. Gehl Agriculture's net sales increased 8%
to $23.9 million in the third quarter of 1997 from $22.1 million in the third
quarter of 1996. This increase was primarily the result of higher shipment
levels of feedmaking equipment and skid steer loaders in the third quarter of
1997 than in the comparable period of 1996.
Gross profit increased $2.6 million, or 21%, during the third quarter of
1997 versus the comparable period of 1996, due primarily to increased sales
volume. Gross profit as a percent of net sales increased to 30.8% for the
third quarter of 1997 from 30.2% in the comparable period of 1996. The shift
in product mix of sales toward Gehl Construction and the improvement in the
Gehl Agriculture gross margin resulted in the overall Company increase in
gross profit as a percentage of net sales. Gross profit as a percent of net
sales for Gehl Construction decreased to 31.3% in the third quarter of 1997
from 32.1% in the third quarter of 1996. The primary reason for the decrease
was a competitive pricing environment in which, generally, price increases
have not kept pace with cost increases as well in 1997 as in 1996. Gross
profit as a percent of net sales for Gehl Agriculture increased to 30.2% in
the third quarter of 1997 from 28.6% in the comparable period of
1996. The primary reasons for the increase were: 1) reduced product costs due
to higher overhead absorption associated with increased levels of production,
2) export sales, typically made at a lower gross margin than domestic sales,
constituting a smaller portion of third quarter shipments in 1997 than in
1996, and 3) the impact of a change in the mix of products shipped in the
third quarter of 1997 versus products shipped in comparable 1996.
Selling, general and administrative expenses increased $1.2 million, or
15%, during the third quarter of 1997 versus the comparable period of 1996
primarily due to selling expenses associated with higher sales levels. As a
percent of net sales, selling, general and administrative expenses decreased
to 18.5% during the third quarter of 1997 versus 19.1% in the comparable
period of 1996.
Income from operations in the third quarter of 1997 was $5.9 million versus
$4.5 million in the third quarter of 1996. The increase was primarily due to
increased sales volume, the overall increase in gross margin percentage and a
decline in selling, general and administrative expenses as a percent of net
sales.
Interest expense decreased $415,000, or 50%, to $412,000 in the third
quarter of 1997 from $827,000 in the third quarter of 1996. The decrease was
a result of a reduction in average debt outstanding to $18.5 million in the
third quarter of 1997 versus $38.8 million in the third quarter of 1996,
combined with a decrease in the average rate of interest paid by the Company
to 8.1% in the third quarter of 1997 versus 8.2% in the comparable period of
1996. The decrease in the average debt outstanding was primarily the result
of cash flow generated from reduced accounts receivable levels and increased
shareholders' equity over the past twelve months.
Other expense, net was $493,000 in the third quarter of 1997 versus
$587,000 in the third quarter of 1996. The decrease was primarily due to
lower costs of selling finance contracts receivable in the third quarter of
1997 versus the comparable period of 1996. The decrease in the costs of such
sales was primarily the result of selling approximately $3.0 million less
contracts in the third quarter of 1997 as compared with the 1996 third
quarter.
The Company's effective income tax rate was 36% for the third quarter of
1997 versus 25.1% for the third quarter of 1996.
Nine Months Ended September 27, 1997 Compared to Nine Months Ended September
28, 1996
Net sales for the first nine months of 1997 of $143.4 million were $19.2
million, or 15%, higher than the $124.2 million of net sales in the comparable
period of 1996. Gehl Construction's net sales increased 28% to $70.4 million
in the first nine months of 1997 from $54.9 million in the first nine months
of 1996. This increase resulted from increased demand for the Company's
products, particularly rough-terrain telescopic forklifts and skid steer
loaders. Gehl Agriculture's net sales increased 5% to $73.0 million in the
first nine months of 1997 from $69.3 million in the first nine months of 1996.
Of the Company's total net sales reported for the first nine months of 1997,
$23.7 million represented sales made outside of the United States.
Gross profit increased $6.7 million, or 18%, in the first nine months of
1997 versus the comparable period of 1996, due primarily to increased sales
volume. Gross profit as a percent of net sales increased to 30.2% for the
first nine months of 1997 from 29.5% in the comparable period of 1996. The
shift in product mix of sales toward Gehl Construction and the improvement in
the Gehl Agriculture gross margin resulted in the overall Company increase in
gross profit as a percent of net sales. Gross profit as a percent of net
sales for Gehl Construction decreased to 31.4% in the first nine months of
1997 from 32.1% in the first nine months of 1996. The primary reason for the
decrease was a competitive pricing environment in which, generally, price
increases have not kept pace with cost increases as well in 1997 as in 1996.
Gross profit as a percent of net sales for Gehl Agriculture increased to 29.0%
for the first nine months of 1997 from 27.4% for the first nine months of
1996. The primary reasons for the Gehl Agriculture percentage improvement
were: 1) reduced product costs due to higher overhead absorption associated
with increased levels of production, 2) export sales, typically made at a
lower gross margin than domestic sales, constituting a lower portion of sales
in the first nine months of 1997 than in 1996, and 3) the impact of a change
in the mix of products shipped in the first nine months of 1997 versus
products shipped in comparable 1996.
Selling, general and administrative expenses increased $2.3 million, or 9%,
during the first nine months of 1997 versus the comparable period of 1996
primarily due to increased selling expenses associated with higher sales
levels. Selling, general and administrative expenses increased at a lower
rate than the increase in net sales due to the Company's commitment to cost
containment. As a percent of net sales, selling, general and administrative
expenses decreased to 18.6% during the first nine months of 1997 versus 19.6%
in the comparable period of 1996.
Income from operations in the first nine months of 1997 of $16.7 million
was 36% higher than the $12.3 million for the comparable period of 1996.
Interest expense decreased $1.6 million, or 54%, to $1.3 million in the
first nine months of 1997 from $2.9 million in the first nine months of 1996.
The decrease was a result of a reduction in average debt outstanding to $21.5
million in the first nine months of 1997 versus $45.9 million in the
comparable period of 1996, combined with a decrease in the average rate of
interest paid by the Company to 8.1% in the first nine months of 1997 from
8.3% in the comparable period of 1996. The decrease in the average debt
outstanding was primarily the result of cash flow generated from reduced
accounts receivables levels and increased shareholders' equity over the past
twelve months.
Interest income decreased $154,000, or 13%, to $1,039,000 for the first nine
months of 1997 from $1,193,000 in the comparable period of 1996 due primarily
to reduced interest income earned on floor plan wholesale receivables and
retail finance receivables.
The Company's effective income tax rate was 36% for the first nine months
of 1997 versus 21.4% for the first nine months of 1996.
Financial Condition
The Company's working capital was $56.3 million at September 27, 1997, as
compared to $57.6 million at December 31, 1996 and $65.9 million at September
28, 1996. The decrease since September 28, 1996 was due primarily to a
reduction in accounts receivable, reduced cash balances and increases in
current liabilities.
Capital expenditures for property, plant and equipment during the first
nine months of 1997 were approximately $5.5 million. The Company expects to
make approximately $8.1 million of capital expenditures during 1997, including
expanding its two South Dakota manufacturing facilities and adding equipment
to increase production levels of skid loaders, rough-terrain telescopic
forklifts and paving products. Outstanding commitments as of September 27,
1997 totaled approximately $2.0 million, including $1.5 million related to the
aforementioned plant expansion projects.
As of September 27, 1997, the weighted average interest rate paid by the
Company on outstanding borrowings under its line of credit facility was 6.0%.
The Company had available unused borrowing capacity of $59.8 million, $45.4
million and $42.5 million under the line of credit facility at September 27,
1997, December 31, 1996 and September 28, 1996, respectively. At September
27, 1997, December 31, 1996 and September 28, 1996, the borrowings outstanding
under the line of credit facility were $3.4 million, $10.5 million and $21.3
million, respectively.
The sale of finance contracts is an important component of the Company's
overall liquidity. Gehl has arrangements with several financial institutions
and finance service companies to sell, with recourse, its finance contracts
receivable. The Company continues to service all contracts whether or not
sold. At September 27, 1997, Gehl serviced $64.2 million of such contracts,
of which $53.8 million were owned by other parties. The Company believes that
it has sufficient capacity to sell its retail finance contracts for the
foreseeable future.
Shareholders' equity at September 27, 1997 was $74.8 million. This amount
was $12.1 million higher than the $62.7 million of shareholders' equity at
September 28, 1996, due primarily to income earned from September 29, 1996
through September 27, 1997.
As reflected in Note 7 to Notes to Condensed Consolidated Financial
Statements, on October 2, 1997, the Company completed its acquisition of
Brunel America Inc. and related subsidiaries. The purchase price of the
acquisition was funded by borrowing under the Company's existing line of
credit facility. The Company believes that following the acquisition its line
of credit facility and arrangements to sell finance contracts will continue to
provide sufficient liquidity to fund the Company's operations for the
foreseeable future.
Special Note Regarding Forward-Looking Statements
The statements which are not historical facts contained in the Quarterly
Report on Form 10-Q are forward-looking statements intended to qualify for the
safe harbors from liability established by the Private Securities Litigation
Reform Act of 1995. Such statements are subject to certain risks and
uncertainties which could cause actual results to differ materially from those
currently anticipated. These factors include, without limitation, competitive
conditions in the markets served by the Company, market acceptance of existing
and new products manufactured by the Company, changes in the cost of raw
materials and component parts purchased by the Company, changes in interest
and currency exchange rates, general economic conditions, and the ability of
the Company to successfully integrate its recent acquisition of Brunel America
Inc. and related subsidiaries. These factors should be considered in
evaluating the forward-looking statements, and undue reliance should not be
placed on such statements. The forward-looking statements included herein are
made as of the date hereof and the Company undertakes no obligation to update
publicly such statements to reflect subsequent events or circumstances.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit 2 Stock Purchase Agreement, dated as of September 12, 1997,
between Gehl Company and Brunel Holdings, plc.
[Incorporated by reference to Exhibit 2 to Gehl Company's
Current Report on Form 8-K, dated October 2, 1997]
Exhibit 4 Amendment to Amended and Restated Loan and Security
Agreement by and between Deutsche Financial Services
Corporation, f/k/a ITT Commercial Finance Corp., Deutsche
Financial Services Canada Corporation and Gehl Company and
its subsidiaries [Incorporated by reference to Exhibit 4.1
to Gehl Company's Current Report on Form 8-K, dated
October 2, 1997]
Exhibit 27 Financial Data Schedule [EDGAR version only]
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the Company during the quarter
ended September 27, 1997.
Following the end of such quarter, the Company filed a Current
Report on Form 8-K, dated October 2, 1997, reporting under Item 2
the Company's acquisition of Brunel America Inc. and related
subsidiaries.
<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.
GEHL COMPANY
Date: November 7, 1997 By: /s/ William D. Gehl
William D. Gehl
Chairman of the Board, President
and Chief Executive Officer
Date: November 7, 1997 By: /s/ Kenneth P. Hahn
Kenneth P. Hahn
Vice President of Finance and
Treasurer (Principal Financial
and Accounting Officer)
<PAGE>
GEHL COMPANY
FORM 10-Q
September 27, 1997
EXHIBIT INDEX
Exhibit
Number Document Description
2 Stock Purchase Agreement, dated as of September 12, 1997, between
Gehl Company and Brunel Holdings, plc. [Incorporated by reference to
Exhibit 2 to Gehl Company's Current Report on Form 8-K, dated
October 2, 1997]
4 Amendment to Amended and Restated Loan and Security Agreement by and
between Deutsche Financial Services Corporation, f/k/a ITT
Commercial Finance Corp., Deutsche Financial Services Canada
Corporation and Gehl Company and its subsidiaries [Incorporated by
reference to Exhibit 4.1 to Gehl Company's Current Report on Form 8-
K, dated October 2, 1997]
27 Financial Data Schedule [EDGAR version only]
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Gehl
Company's consolidated balance sheet at September 27, 1997 and consolidated
statements of income for the nine month period ended September 27, 1997 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-1-1997
<PERIOD-END> SEP-27-1997
<CASH> 3204
<SECURITIES> 0
<RECEIVABLES> 69784
<ALLOWANCES> 0<F1>
<INVENTORY> 16877
<CURRENT-ASSETS> 95210
<PP&E> 62240
<DEPRECIATION> 37061
<TOTAL-ASSETS> 129926
<CURRENT-LIABILITIES> 38950
<BONDS> 12016<F2>
<COMMON> 620
0
0
<OTHER-SE> 74140
<TOTAL-LIABILITY-AND-EQUITY> 129926
<SALES> 143407
<TOTAL-REVENUES> 143407
<CGS> 100070
<TOTAL-COSTS> 100070
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1339
<INCOME-PRETAX> 15417
<INCOME-TAX> 5550
<INCOME-CONTINUING> 9867
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9867
<EPS-PRIMARY> 1.52
<EPS-DILUTED> 0<F3>
<FN>
<F1>Company presents receivables on a net basis in compliance with Article 10
of Regulation S-X.
<F2>Includes all non-current portion of debt obligations
<F3>Not reported
</FN>
</TABLE>
