Lindsay Corporation (NYSE: LNN), a leading provider of irrigation
systems and infrastructure products, today announced results for its
fiscal third quarter ended May 31, 2011.
Third Quarter Results
Third quarter fiscal 2011 revenues of $153.4 million increased 53
percent from $100.1 million in the same prior year period. Net earnings
were $15.3 million or $1.20 per diluted share compared with $6.2 million
or $0.50 per diluted share, in the prior fiscal year's third quarter.
Total irrigation equipment revenues increased 58 percent to $126.9
million from $80.4 million in the prior fiscal year's third quarter.
U.S. irrigation revenues of $76.7 million increased 60 percent, while
international irrigation revenues of $50.2 million increased 55 percent
compared to the same prior year period. Infrastructure revenues for the
third quarter increased 35 percent to $26.5 million.
Gross margin was 27.0 percent compared to 25.2 percent in the prior
year's third quarter. During the fiscal third quarter overall gross
margins improved on higher international irrigation margins and on
improved margins in diversified manufacturing which includes railroad
signals and structures, commercial tubing and contract manufacturing.
Operating expenses increased $3.2 million to $18.4 million compared to
the third quarter of the prior fiscal year. The increase in operating
expenses included higher personnel related costs, an incremental
increase in expenses from the acquisitions of Digitec Inc., and WMC
Technology Limited, and additional expenses for environmental monitoring
and remediation as part of ongoing development and implementation of the
EPA work plan at the Lindsay, Nebraska facility. Operating expenses were
12.0 percent of revenue compared to 15.2 percent of revenue in the prior
fiscal year's third quarter. Operating income was $23.1 million compared
to $10.0 million in the same prior year period.
Cash and cash equivalents of $100.6 million were $17.1 million higher
compared with last year. Debt decreased $4.3 million over the same
period and $7.7 million of cash was used in acquisitions completed in
the past year. At May 31, 2011, accounts receivable and inventory
balances were $36.5 million higher compared to the prior year due to
increased business activity.
Lindsay's backlog of unshipped orders at May 31, 2011 was $43.3 million
compared with $64.3 million at February 28, 2011 and $33.9 million at
May 31, 2010.
Nine Month Results
Total revenues for the nine months ended May 31, 2011 were $362.8
million, a 34 percent increase from $271.2 million compared to the same
prior year period. Total irrigation equipment revenues of $278.6 million
increased 38 percent from a year ago, while infrastructure revenues
increased 21 percent to $84.2 million. The Company's operating income
for the nine-month period was $46.8 million compared to $28.1 million
during the same prior year period. Net earnings were $30.9 million or
$2.44 per diluted share, as compared to $18.9 million, or $1.50 per
diluted share for the prior year period.
Outlook
Rick Parod, president and chief executive officer, commented,
"Conditions in the global agriculture markets continued to be strong
throughout the primary irrigation selling season. Agricultural commodity
prices remain significantly higher compared to the previous year,
creating favorable economic conditions for growers, worldwide."
Parod continued, "Infrastructure operating margin increased in the
quarter due to operational improvements implemented and leveraging
expenses on a higher base revenue."
Parod added, "For our business overall, the global, long-term drivers of
water use efficiency, population growth, increasing importance of
biofuels, and improvements in infrastructure safety and security remain
positive."
Third-Quarter Conference Call
Lindsay's fiscal 2011 third quarter investor conference call is
scheduled for 11:00 a.m. Eastern Time today. Interested investors may
participate in the call by dialing (888) 748-0479 domestically, or (706)
758-9823 internationally, and referring to conference ID # 75449355.
Additionally, the conference call will be simulcast live on the
Internet, and can be accessed via the investor relations section of the
Company's Web site, www.lindsay.com.
The Company will have a slide presentation available to augment
management's formal presentation, which will also be accessible via the
Company's Web site.
About the Company
Lindsay manufactures and markets irrigation equipment primarily used in
agricultural markets which increase or stabilize crop production while
conserving water, energy, and labor. The Company also manufactures and
markets infrastructure and road safety products through its wholly owned
subsidiaries, Barrier Systems Inc. and Snoline S.P.A. At May 31, 2011,
Lindsay had approximately 12.6 million shares outstanding, which are
traded on the New York Stock Exchange under the symbol LNN.
This release contains forward-looking statements that are subject to
risks and uncertainties and which reflect management's current beliefs
and estimates of future economic circumstances, industry conditions,
company performance and financial results. You can find a discussion of
many of these risks and uncertainties in the annual, quarterly and
current reports that the Company files with the Securities and Exchange
Commission. Forward-looking statements include information concerning
possible or assumed future results of operations of the Company and
those statements preceded by, followed by or including the words
"anticipate," "estimate," "believe," "intend," "expect," "outlook,"
"could," "may," "should," "will," or similar expressions. For these
statements, the Company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.The Company undertakes no
obligation to update any forward-looking information contained in this
press release.
Lindsay Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three months ended
Nine months ended
May 31,
May 31,
(in thousands, except per share amounts)
2011
2010
2011
2010
Operating revenues
$
153,446
$
100,073
$
362,780
$
271,239
Cost of operating revenues
111,947
74,818
263,049
198,051
Gross profit
41,499
25,255
99,731
73,188
Operating expenses:
Selling expense
6,929
5,909
20,858
16,683
General and administrative expense
8,640
7,348
23,936
22,963
Engineering and research expense
2,789
1,949
8,125
5,418
Total operating expenses
18,358
15,206
52,919
45,064
Operating income
23,141
10,049
46,812
28,124
Other income (expense):
Interest expense
(192
)
(474
)
(591
)
(1,291
)
Interest income
71
49
150
215
Other income (expense), net
139
12
366
72
Earnings before income taxes
23,159
9,636
46,737
27,120
Income tax provision
7,870
3,388
15,837
8,217
Net earnings
$
15,289
$
6,248
$
30,900
$
18,903
Basic net earnings per share
$
1.22
$
0.50
$
2.46
$
1.52
Diluted net earnings per share
$
1.20
$
0.50
$
2.44
$
1.50
Weighted average shares outstanding
12,564
12,486
12,538
12,439
Diluted effect of stock equivalents
139
124
139
138
Weighted average shares outstanding assuming dilution
12,703
12,610
12,677
12,577
Cash dividends per share
$
0.085
$
0.080
$
0.255
$
0.240
Lindsay Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Unaudited)
May 31,
May 31,
August 31,
($ in thousands, except par values)
2011
2010
2010
ASSETS
Current Assets:
Cash and cash equivalents
$
100,568
$
83,509
$
83,418
Receivables, net of allowance of $2,464, $2,246 and $2,244,
respectively
87,588
56,804
63,629
Inventories, net
52,833
47,070
45,296
Deferred income taxes
6,798
5,974
6,722
Other current assets
12,177
9,071
8,946
Total current assets
259,964
202,428
208,011
Property, plant and equipment, net
57,279
56,379
57,646
Other intangible assets, net
27,430
26,728
27,715
Goodwill, net
28,815
23,292
27,395
Other noncurrent assets
4,318
5,652
4,714
Total assets
$
377,806
$
314,479
$
325,481
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable
$
42,966
$
29,547
$
26,501
Current portion of long-term debt
4,286
4,286
4,286
Other current liabilities
40,445
29,981
36,295
Total current liabilities
87,697
63,814
67,082
Pension benefits liabilities
6,233
6,192
6,400
Long-term debt
5,357
9,643
8,571
Deferred income taxes
10,947
9,431
10,816
Other noncurrent liabilities
1,790
2,053
3,005
Total liabilities
112,024
91,133
95,874
Shareholders' equity:
Preferred stock, ($1 par value, 2,000,000 shares authorized, no
shares
issued and outstanding)
-
-
-
Common stock, ($1 par value, 25,000,000 shares authorized,
18,268,549, 18,184,620 and 18,184,820 shares issued at May 31, 2011
and 2010 and August 31, 2010, respectively)
18,269
18,185
18,185
Capital in excess of stated value
34,162
30,515
30,756
Retained earnings
297,971
265,373
270,272
Less treasury stock (at cost, 5,698,448 shares at
May 31, 2011 and 2010 and August 31, 2010, respectively)
(90,961
)
(90,961
)
(90,961
)
Accumulated other comprehensive income, net
6,341
234
1,355
Total shareholders' equity
265,782
223,346
229,607
Total liabilities and shareholders' equity
$
377,806
$
314,479
$
325,481
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
($ in thousands)
Nine Months Ended
May 31,
2011
2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings
$
30,900
$
18,903
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization
8,820
8,027
Provision for uncollectible accounts receivable
248
568
Deferred income taxes
(2,001
)
(990
)
Stock-based compensation expense
2,384
1,755
Gain on disposal of fixed assets
(43
)
(537
)
Other, net
(307
)
121
Changes in assets and liabilities:
Receivables
(21,326
)
(16,095
)
Inventories
(5,330
)
(2,280
)
Other current assets
(2,929
)
(3,127
)
Accounts payable
15,441
10,439
Other current liabilities
2,642
(2,768
)
Current taxes payable
853
2,285
Other noncurrent assets and liabilities
(1,077
)
(1,513
)
Net cash provided by operating activities
28,275
14,788
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment
(5,315
)
(3,962
)
Proceeds from sale of property, plant and equipment
57
577
Acquisition of business, net of cash acquired
(1,279
)
(132
)
Payment for settlement of net investment hedge
(1,261
)
565
Net cash used in investing activities
(7,798
)
(2,952
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock under stock compensation plans
243
544
Principal payments on long-term debt
(3,214
)
(11,697
)
Net borrowing on revolving line of credit
1,212
345
Excess tax benefits from stock-based compensation
1,068
368
Dividends paid
(3,201
)
(2,991
)
Net cash used in financing activities
(3,892
)
(13,431
)
Effect of exchange rate changes on cash
565
(825
)
Net increase (decrease) in cash and cash equivalents
17,150
(2,420
)
Cash and cash equivalents, beginning of period
83,418
85,929
Cash and cash equivalents, end of period
$
100,568
$
83,509
Lindsay Corporation: Jim Raabe, 402-827-6579 Vice
President & Chief Financial Officer or Halliburton
Investor Relations: Hala Elsherbini or Geralyn DeBusk,
972-458-8000
Recommend:
