Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its third quarter ended May 31, 2012.
Third Quarter Results
Third quarter fiscal 2012 total revenues of $172.1 million increased 12 percent from $153.4 million in the same prior year period. Net earnings were $18.8 million or $1.47 per diluted share compared with $15.3 million or $1.20 per diluted share in the prior fiscal year’s third quarter.
Total irrigation equipment revenues increased 18 percent to $149.6 million from $126.9 million in the prior fiscal year’s third quarter. Domestic irrigation revenues of $105.6 million increased 38 percent, while international irrigation revenues of $44.0 million decreased 12 percent as compared to the same prior year period. Infrastructure revenues decreased 15 percent to $22.5 million.
Gross margin was 28.5 percent compared to 27.0 percent in the prior year’s third quarter reflecting improvements in gross margins in both the irrigation and infrastructure segments. Irrigation gross margins increased as a result of favorable sales mix. Infrastructure margins increased due to improved product pricing in road safety and diversified products along with efforts to lower manufacturing costs.
Operating expenses were $20.2 million in the quarter compared to $18.4 million in the third quarter of the prior fiscal year. The primary element of the expense increase related to personnel related costs including those associated with an acquired company purchased in fiscal 2011. Operating expenses were 11.8 percent of sales in the third quarter of 2012 compared with 12.0 percent of sales in the prior year period. Operating margins of 16.7 percent increased from 15.1 percent in the prior year period.
Cash and cash equivalents of $119.8 million were $19.2 million higher compared with the end of the third quarter last year, while debt decreased $4.3 million over the same period.