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 30, 2000
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 (I.R.S. Employer
of incorporation or organization) Identification No.)
143 Water Street, West Bend, WI 53095
(Address of principal (Zip code)
executive office)
(262) 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 30, 2000
Common Stock, $.10 Par Value 5,374,621
<PAGE>
GEHL COMPANY
FORM 10-Q
September 30, 2000
REPORT INDEX
Page No.
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Condensed Consolidated Statements of Income for the Three- and Nine- 3
Month Periods Ended September 30, 2000 and October 2, 1999
Condensed Consolidated Balance Sheets at September 30, 2000, 4
December 31, 1999, and October 2, 1999
Condensed Consolidated Statements of Cash Flows for the Nine-Month 5
Period Ended September 30, 2000 and October 2, 1999
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Results of 8
Operations and Financial Condition
Item 3. Quantitative and Qualitative Disclosures About Market Risk 12
PART II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
<PAGE>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
GEHL COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data; unaudited)
<CAPTION>
Three Months Ended Nine Months Ended
September 30, October 2, September 30, October 2,
2000 1999 2000 1999
--------- --------- --------- --------
<S> <C> <C> <C> <C>
NET SALES $ 53,606 $ 69,838 $ 201,812 $ 222,649
Cost of goods sold 38,910 49,195 146,361 159,115
-------- --------- --------- --------
GROSS PROFIT 14,696 20,643 55,451 63,534
Selling, general and
administrative expenses 11,991 10,322 35,233 35,348
-------- --------- --------- --------
INCOME FROM OPERATIONS 2,705 10,321 20,218 28,186
Interest expense (1,205) (789) (3,469) (2,343)
Interest income 452 452 1,277 1,290
Other expense, net (1,663) (525) (3,586) (1,742)
-------- --------- --------- --------
INCOME BEFORE INCOME TAXES 289 9,459 14,440 25,391
Income tax provision 101 3,358 5,054 9,014
-------- --------- --------- --------
NET INCOME $ 188 $ 6,101 $ 9,386 $ 16,377
-------- --------- --------- --------
EARNINGS PER SHARE
Diluted $ .03 $ 1.00 $ 1.65 $ 2.52
Basic $ .03 $ 1.04 $ 1.70 $ 2.62
</TABLE>
The accompanying notes are an integrel part of the financial statements.
<PAGE>
<TABLE>
GEHL COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
<CAPTION>
September 30, December 31, October 2,
2000 1999 1999
(Unaudited) (Unaudited)
ASSETS
<S> <C> <C> <C>
Cash $ 2,808 $ 1,010 $ 3,967
Accounts receivable-net 79,168 68,551 74,057
Finance contracts receivable- net 12,367 12,074 10,945
Inventories 45,741 35,206 32,119
Deferred tax assets 8,431 8,431 7,138
Other current assets 360 511 903
--------- --------- --------
Total Current Assets 148,875 125,783 129,129
--------- --------- --------
Property, plant and equipment-net 44,165 37,028 34,492
Finance contracts receivable-net,
non-current 7,618 7,311 6,558
Intangible assets 15,145 15,706 15,894
Other assets 10,214 8,332 8,671
--------- --------- --------
TOTAL ASSETS $ 226,017 $ 194,160 $194,744
========= ========= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current portion of long-term debt
obligations $ 193 $ 519 $ 562
Accounts payable 24,957 25,077 26,198
Accrued liabilities 29,477 30,703 32,753
--------- --------- --------
Total Current Liabilities 54,627 56,299 59,513
--------- --------- --------
Line of credit facility 50,522 22,038 21,060
Long-term debt obligations 8,933 9,059 9,142
Other long-term liabilities 6,034 5,391 5,205
Deferred income taxes 3,949 3,949 3,943
--------- --------- --------
Total Long-Term Liabilities 69,438 40,437 39,350
--------- --------- --------
Common stock, $.10 par value,
25,000,000 shares authorized,
5,374,621, 5,645,620 and
6,570,271 shares outstanding,
respectively 538 565 657
Preferred stock, $.10 par value,
2,000,000 shares authorized, 250,000
shares designated as Series A
Preferred Stock, no shares issued - - -
Treasury stock, at cost (767,500
shares at October 2, 1999) - - (15,613)
Capital in excess of par 6,463 11,294 29,329
Retained earnings 95,854 86,468 82,660
Accumulated other comprehensive loss (903) (903) (1,152)
-------- -------- --------
Total Shareholders' Equity 101,952 97,424 95,881
-------- -------- --------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $226,017 $194,160 $194,744
======== ======== ========
</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 30, October 2,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net Income $ 9,386 $ 16,377
Adjustments to reconcile net income to net cash
(used for) provided by operating activities:
Depreciation 3,725 3,239
Amortization 636 588
Proceeds from sales of finance contracts 68,562 53,553
Increase in finance contracts receivable (72,716) (57,491)
Cost of sales of finance contracts 3,554 2,025
Net change in remaining working capital items (22,347) 4,400
--------- ---------
Net cash (used for) provided by operating
activities (9,200) 22,691
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment additions, net (10,862) (3,589)
Other assets (1,957) (2,446)
--------- ---------
Net cash used for investing activities (12,819) (6,035)
CASH FLOWS FROM FINANCING ACTIVITIES:
Decrease in long-term debt obligations (452) (481)
Increase (decrease) in long-term liabilities 643 (195)
Proceeds from line of credit facility 28,484 1,701
Proceeds from issuance of common stock 445 1,012
Treasury stock purchases (5,303) (15,613)
--------- ---------
Net cash provided by (used for) financing
activities 23,817 (13,576)
--------- ---------
Net increase in cash 1,798 3,080
Cash, beginning of period 1,010 887
--------- ---------
Cash, end of period $ 2,808 $ 3,967
========= =========
Supplemental disclosure of cash flow
information:
Cash paid for the following:
Interest $ 3,236 $ 2,284
Income taxes $ 6,348 $ 8,702
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
GEHL COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2000
(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 30, 2000 and October 2, 1999 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. Due in part to the seasonal nature of the Company's business, the
results of operations for the nine months ended September 30, 2000 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, 1999 as
filed with the Securities and Exchange Commission.
NOTE 2 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
pre-tax income, permanent book/tax differences, and tax credits.
NOTE 3 INVENTORIES
If all of the Company's inventories had been valued on a current cost
basis, which approximated FIFO value, inventories by major classification
would have been as follows (in thousands):
September 30, December 31, October 2,
2000 1999 1999
------------- ------------ -------------
Raw materials and supplies $17,845 $ 17,371 $ 17,306
Work-in-process 5,590 5,767 5,149
Finished machines and parts 41,501 31,263 29,060
------- -------- --------
Total current cost value 64,936 54,401 51,515
Adjustment to LIFO basis (19,195) (19,195) (19,396)
------- -------- --------
$45,741 $ 35,206 $ 32,119
======= ======== ========
NOTE 4 ACCOUNTING PRONOUNCEMENTS
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards (SFAS) No. 133, "Accounting for Derivative Investments
and Hedging Activities" which was originally effective for fiscal quarters of
fiscal years beginning after June 15, 1999. The statement, as amended by SFAS
No. 137 and 138, will now be effective January 1, 2001 for the Company. Due
to the Company's current limited use of derivative instruments, the adoption
of this statement is not expected to materially affect the Company's financial
condition or results of operations.
NOTE 5 EARNINGS PER SHARE AND COMPREHENSIVE INCOME
Basic net income per common share is computed by dividing net income by the
weighted- average number of common shares outstanding for the period. Diluted
net income per common share is computed by dividing net income by the
weighted-average number of common shares, and, if applicable, common stock
equivalents which would arise from the exercise of stock options.
A reconciliation of the shares used in the computation of earnings per
share follows (in thousands):
For the three months ended: September 30, 2000 October 2, 1999
------------------ -----------------
Basic shares 5,436 5,856
Effect of options 105 235
------ ------
Diluted shares 5,541 6,091
====== ======
For the nine months ended: September 30, 2000 October 2, 1999
------------------ -----------------
Basic shares 5,518 6,260
Effect of options 154 243
------ ------
Diluted shares 5,672 6,503
====== ======
Accumulated other comprehensive loss is comprised entirely of minimum
pension liability adjustments. Comprehensive income equaled net income for
the nine months ended September 30, 2000 and October 2, 1999, as the minimum
pension liability amount did not change from the respective prior year-end
amount.
NOTE 6 STOCK REPURCHASE
In March 2000, the Company's Board of Directors authorized a repurchase
plan providing for the repurchase of up to an additional 325,000 shares of the
Company's outstanding common stock. As of September 30, 2000, 212,700 shares
had been repurchased in the open market under this authorization at an
aggregate cost of $3.2 million. In March 1999, a repurchase plan relating to
up to 325,000 shares of the Company's outstanding common stock was authorized.
As of April 1, 2000, all of the authorized shares under that plan had been
repurchased at an aggregate cost of $5.8 million. The treasury stock acquired
by the Company has been cancelled and returned to the status of authorized but
unissued shares.
NOTE 7 BUSINESS SEGMENTS
The Company operates in two business segments: Construction equipment and
Agricultural equipment. The long-term financial performance of the Company's
reportable segments are affected by separate economic conditions and cycles.
The segments are managed separately based on the fundamental differences in
their operations. Following is selected segment information (in thousands):
Three Months Ended Nine Months Ended
------------------ --------------------
September 30, October 2, September 30, October 2,
2000 1999 2000 1999
Net Sales:
Construction $31,698 $41,251 $120,893 $132,852
Agricultural 21,908 28,587 80,919 89,797
------- ------- --------- --------
Consolidated $53,606 $69,838 $201,812 $222,649
======= ======= ========= ========
Income from Operations:
Construction $ 2,128 $ 6,640 $ 13,213 $ 19,033
Agricultural 577 3,681 7,005 9,153
------- ------- -------- --------
Consolidated $ 2,705 $10,321 $ 20,218 $ 28,186
======= ======= ======== ========
Item 2. Management's Discussion And Analysis Of Results Of Operations And
Financial Condition
RESULTS OF OPERATIONS
Three Months Ended September 30, 2000 Compared to Three Months Ended October
2, 1999
Net sales for the third quarter of 2000 of $53.6 million were 23% lower
than the $69.8 million in the comparable period of 1999. Construction
equipment net sales decreased to $31.7 million in the third quarter of 2000
from $41.2 million in the third quarter of 1999, a 23% decline. The decline in
Construction equipment net sales was due primarily to both shipments and
retail sales of telescopic handlers being below the comparable three month
levels of 1999, as a result of reduced industry-wide demand for telescopic
handler equipment. In addition, a lower level of North American skid loader
shipments, and a reduction in overseas demand for skid loaders, resulting in
part from the continued weakness of the Euro, further contributed to the
reduction from 1999 sales levels. The industry-wide reduced demand for
telescopic handlers is primarily a result of a decline in residential
construction activity, especially within the U.S. housing sector, which has
been adversely impacted by increased interest rates, and reduced demand for
new units by rental customers due to low equipment rental rates and adequate
levels of units in rental fleet inventory. Offsetting these negative demand
factors, the Company realized a positive contribution in the third quarter of
2000 from shipments of new equipment, primarily mini-excavators, introduced
within the past fifteen months.
Sales of the Company's agricultural equipment in the third quarter of 2000
were $21.9 million, 23% less than the $28.6 million recorded in the third
quarter of 1999. The decline in net sales was due primarily to lower
shipments of skid loaders and forage harvesting equipment. Partially
offsetting these reductions was an increased level of disc mower conditioner
shipments as a result of new product offerings in 2000. The continuation of
low milk prices and the effect of higher interest rates contributed to the
overall decline in demand for agricultural equipment by farmers.
Of the Company's total net sales reported for the third quarter of 2000,
$8.3 million represented sales made outside of the United States compared with
$10.3 million in the comparable period of 1999. The decrease in export sales
was due primarily to a reduction in shipments to Europe as a result of the
decline in the value of the Euro versus the U.S. dollar.
Gross profit decreased $5.9 million, or 29%, during the third quarter of
2000 versus the comparable period of 1999, due primarily to decreased sales
volume. Gross profit as a percent of net sales decreased to 27.4% for the
third quarter of 2000 from 29.6% in the comparable period of 1999. Gross
profit as a percent of net sales for Construction equipment decreased to 24.5%
in the third quarter of 2000 from 28.0% in the third quarter of 1999. The
decrease in Construction equipment gross margin was a function of a) decreased
telescopic handler sales, which sales are generally at higher gross margins
than other Construction equipment, b) increased industry competition which has
resulted in overall gross margin compression, c) increased mini-excavator
shipments, which sales are generally at lower gross margins than other
construction equipment, and d) decreased net sales per unit for product
shipped into Europe due to the devaluation of the Euro. Gross profit as a
percent of net sales for Agricultural equipment decreased to 31.6% in the
third quarter of 2000 from 31.9% in the comparable period of 1999.
Selling, general and administrative expenses increased $1.7 million, or
16%, during the third quarter of 2000 versus the comparable period of 1999,
due primarily to increased sales related costs incurred, in part, in response
to competitive market conditions, and continued investments in projects such
as enterprise resource planning (ERP), new product development and improved
parts distribution to enhance future market opportunities. As a percent of
net sales, selling, general and administrative expenses increased to 22.4%
during the third quarter of 2000 versus 14.8% in the comparable period of
1999.
Income from operations in the third quarter of 2000 was $2.7 million versus
$10.3 million in the third quarter of 1999.
Interest expense increased $416,000 to $1,205,000 in the third quarter of
2000 from $789,000 in the third quarter of 1999. This resulted from an
increase in average debt outstanding to $59.6 million in the third quarter of
2000 versus $35.1 million in the third quarter of 1999, and an increase in the
average rate of interest paid by the Company to 8.7% in the third quarter of
2000 versus 8.0% in the comparable period of 1999.
Other expense increased $1.2 million to $1.7 million in the third quarter
of 2000 from $0.5 million in the third quarter of 1999. This was due
primarily to increased costs of sales of finance contracts which resulted from
a) selling $11.9 million, or 69%, more receivables in the third quarter of
2000 versus the comparable period of 1999, b) lower finance rates offered to
Gehl finance customers, and c) increased discount rates used in selling
finance contracts to third parties resulting from the general trend of overall
interest rates.
Third quarter 2000 net income was $188,000 versus $6.1 million in the third
quarter of 1999. Diluted earnings were $.03 per share for the third quarter
of 2000 versus $1.00 per share in the third quarter of 1999.
Nine months Ended September 30, 2000 Compared to Nine months Ended October 2,
1999
Net sales for the first nine months of 2000 of $201.8 million were $20.8
million, or 9%, lower than the $222.6 million of net sales in the comparable
period of 1999. Construction equipment net sales were $120.9 million in the
first nine months of 2000 compared to $132.8 million in the first nine months
of 1999, a decrease of 9%. The decline in Construction equipment net sales
was due primarily to both shipments and retail sales of telescopic handlers
being below the comparable nine month levels of 1999, as a result of reduced
industry-wide demand for telescopic handler equipment. In addition, a lower
level of North American skid loader shipments, and a reduction in overseas
demand for skid loaders, resulting in part from the continued weakness of the
Euro, further contributed to the sales reduction. On an industry-wide basis,
year-to-date retail sales of telescopic handlers in North America are reported
to be 15-20% below last year's level. The industry-wide reduced demand for
telescopic handlers is primarily a result of a decline in residential
construction activity, especially within the U.S. housing sector, which has
been adversely impacted by increased interest rates, and reduced demand for
new units by rental customers due to low equipment rental rates and adequate
levels of units in rental fleet inventory. Offsetting these negative demand
factors, the Company realized a positive contribution in the first nine months
of 2000 from shipments of new equipment, primarily mini-excavators, introduced
within the past fifteen months.
Agriculture equipment net sales decreased 10% to $80.9 million in the first
nine months of 2000 from $89.8 million in the first nine months of 1999 due
primarily to reduced shipments of forage harvesting equipment and skid
loaders. Partially offsetting this reduction was an increased level of disc
mower conditioner shipments as a result of new product offerings in 2000. The
continuation of low milk prices and the effect of higher interest rates
contributed to the overall decline in demand for agricultural equipment by
farmers.
Of the Company's total net sales reported for the first nine months of
2000, sales made outside the United States were $28.6 million as compared with
$30.6 million in the comparable period of 1999. The decrease in export sales
was due, in part, to decreased orders from Europe due to the decline in the
value of the Euro versus the U.S. dollar.
Gross profit decreased $8.1 million, or 13%, in the first nine months of
2000 versus the comparable period of 1999, due primarily to decreased sales
volume. Gross profit as a percent of net sales decreased to 27.5% for the
first nine months of 2000 from 28.5% in the comparable period of 1999. Gross
profit as a percent of net sales for Construction equipment decreased to 25.2%
in the first nine months of 2000 from 27.4% in the first nine months of 1999.
The decrease in Construction equipment gross margin was a function of a)
decreased telescopic handler sales, which sales are generally at higher gross
margins than other Construction equipment, b) increased industry competition
which has resulted in overall gross margin compression, c) increased mini-
excavator shipments, which sales are generally at lower gross margins than
other construction equipment, and d) decreased net sales per unit for product
shipped into Europe due to the devaluation of the Euro. Gross profit as a
percent of net sales for Agriculture equipment increased to 30.8% for the
first nine months of 2000 from 30.2% for the first nine months of 1999, due in
part to improved efficiencies at the manufacturing plants.
Selling, general and administrative expenses of $35.2 million during the
first nine months of 2000 were comparable to the same period in 1999. As a
percent of net sales, selling, general and administrative expenses increased
to 17.5% during the first nine months of 2000 versus 15.9% in the comparable
period of 1999 due primarily to decreased sales volume.
Income from operations in the first nine months of 2000 of $20.2 million
was 28% lower than the $28.2 million for the comparable period of 1999.
Interest expense increased $1.1 million to $3.5 million in the first nine
months of 2000 from $2.4 million in the first nine months of 1999. The
increase was a result of an increase in average debt outstanding to $54.0
million in the first nine months of 2000 versus $35.5 million in the
comparable period of 1999 combined with an increase in the average rate of
interest paid by the Company to approximately 8.6% in the first nine months of
2000 versus 7.7% in the comparable period of 1999.
Other expense increased $1.8 million to $3.6 million for the nine months
ended September 30, 2000 from $1.8 million for the nine months ended October
2, 1999. This was the result of increased costs of sales of finance contracts
which were due to a) selling $16.5 million, or 30%, more receivables in the
first nine months of 2000 versus the same period in 1999, b) lower finance
rates offered to Gehl finance customers, and c) increased discount rates used
in selling finance contracts to third parties resulting from the general trend
of overall interest rates.
Net income was $9.4 million for the nine months ended September 30, 2000
versus $16.4 million for the nine months ended October 2, 1999. Diluted
earnings were $1.65 per share for the first nine months of 2000 versus $2.52
per share in the comparable period of 1999.
Financial Condition
The Company's working capital of $94.2 million at September 30, 2000
increased from $69.5 million at December 31, 1999, and $69.6 million at
October 2, 1999 due primarily to increases in accounts receivable and
inventory. The increase in inventories at September 30, 2000 compared to
October 2, 1999 reflects the impact of new products offered since mid-1999
combined with an inventory build-up resulting from the slowing sales trend.
The Company has adjusted production levels in an attempt to reduce inventory
in accordance with current market demand.
Capital expenditures for property, plant and equipment during the first
nine months of 2000 were approximately $10.9 million. The Company plans to
make up to $14 million in capital expenditures in 2000. Outstanding capital
expenditure commitments as of September 30, 2000 totaled approximately $2.0
million.
As of September 30, 2000, the weighted-average interest rate paid by the
Company on outstanding borrowings under its line of credit facility was 8.6%.
The Company had available unused borrowing capacity of $22.1 million, $49.8
million and $51.8 million under the line of credit facility at September 30,
2000, December 31, 1999, and October 2, 1999, respectively. At September 30,
2000, December 31, 1999, and October 2, 1999, the borrowings outstanding under
the line of credit facility were $50.5 million, $22.0 million and $21.1
million, respectively. The increased amounts outstanding under the line of
credit facility at September 30, 2000 were primarily the result of borrowings
used to repurchase Company stock, expand plant facilities and fund working
capital increases.
The sale of finance contracts is an important component of the Company's
overall liquidity. The Company has arrangements with several financial
institutions and financial service companies to sell, with recourse, its
finance contracts receivable. The Company continues to service substantially
all contracts whether or not sold. At September 30, 2000, the Company
serviced $133.3 million of such contracts, of which $113.3 million were owned
by other parties. The Company believes that it will be able to arrange for
sufficient capacity to sell its retail finance contracts for the foreseeable
future.
Shareholders' equity at September 30, 2000 was $102.0 million. This was
$6.1 million higher than the $95.9 million of shareholders' equity at October
2, 1999, due primarily to income earned during the period offset by $8.2
million expended to repurchase Company stock from October 2, 1999 to September
30, 2000.
In March 2000, the Company's Board of Directors authorized a repurchase
plan providing for the repurchase of up to an additional 325,000 shares of the
Company's outstanding common stock. As of September 30, 2000, 212,700 shares
had been repurchased in the open market under this authorization at an
aggregate cost of $3.2 million. In March 1999, a repurchase plan relating to
up to 325,000 shares of the Company s outstanding common stock was authorized.
As of April 1, 2000, all of the authorized shares under that plan had been
repurchased at an aggregate cost of $5.8 million.
Accounting Pronouncements
The Financial Accounting Standards Board (FASB) has issued Statement of
Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative
Investments and Hedging Activities" which was originally effective for fiscal
quarters of fiscal years beginning after June 15, 1999. The statement, as
amended by SFAS No. 137 and 138, will be effective January 1, 2001 for the
Company. Due to the Company's current limited use of derivative instruments,
the adoption of this statement is not expected to materially affect the
Company s financial condition or results of operations.
Forward-Looking Statements
Certain matters discussed in this 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.
These forward-looking statements can generally be identified as such because
the context of the statement will include such words as the Company
"believes", "anticipates" or "expects", or words of similar import.
Similarly, statements that describe the Company's future plans, objectives or
goals are also forward-looking statements. The forward-looking statements are
subject to certain risks and uncertainties which could cause actual results to
differ materially from those currently anticipated. Such risks and
uncertainties include competitive conditions in the markets served by the
Company, changes in the Company s plans regarding capital expenditures,
changes in housing starts and construction activity, general economic
conditions, changes in commodity prices, especially milk, market acceptance of
existing and new products offered by the Company, changes in the cost of raw
materials and component parts purchased by the Company, and interest rate and
foreign currency fluctuations. Shareholders, potential investors and other
readers are urged to consider these factors carefully in evaluating the
forward-looking statements and are cautioned not to place undue reliance on
such forward-looking statements.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There are no material changes to the information provided in response to
this item as set forth in the Company's Form 10-K for the year ended December
31, 1999 as filed with the Securities and Exchange Commission.
PART II OTHER INFORMATION
Item 6. Exhibits and Report on Form 8-K
(a) Exhibits
10.1 Gehl Company Deferred Compensation Plan effective August 1, 2000
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 30, 2000.
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 9, 2000 By:/s/ William D. Gehl
William D. Gehl
Chairman of the Board, President
and Chief Executive Officer
Date: November 9, 2000 By:/s/ Kenneth P. Hahn
Kenneth P. Hahn
Vice President of Finance,
Treasurer and Chief Financial
Officer (Principal Financial
and Accounting Officer)
<PAGE>
GEHL COMPANY
FORM 10-Q
September 30, 2000
EXHIBIT INDEX
Exhibit Number Document Description
10.1 Gehl Company Deferred Compensation Plan effective August 1, 2000
27 Financial Data Schedule [EDGAR version only]
