Lindsay Corporation Reports Fiscal 2012 Fourth Quarter And Full Year Results

Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its fourth quarter ended August 31, 2012.

Fourth Quarter Results

Fourth quarter fiscal 2012 total revenues of $127.8 million increased 10 percent from $116.1 million in the same prior year period. Net earnings were $8.8 million or $0.68 per diluted share compared with $5.9 million or $0.46 per diluted share in the prior fiscal year’s fourth quarter.

Total irrigation equipment revenues increased 18 percent to $107.9 million from $91.4 million in the prior fiscal year’s fourth quarter. Domestic irrigation revenues of $56.2 million increased 18 percent, while international irrigation revenues of $51.7 million increased 19 percent. Infrastructure revenues decreased 20 percent to $19.9 million primarily due to lower sales and leases of Quick-Change Moveable Barrier (QMB) product.

Gross margin was 25.6 percent compared to 25.9 percent in the prior year’s fourth quarter. Irrigation gross margins increased by approximately one percentage point primarily due to fixed cost leverage and efficiency gains over the prior year. Infrastructure margins decreased approximately six percentage points due to lower QMB sales partially offset by improved margins in road safety and diversified products.

Operating expenses were $20.1 million in the quarter compared to $20.3 million in the fourth quarter of the prior fiscal year. Current year expenses included incremental expenses of an acquired company purchased in fiscal 2011 and higher sales and marketing expenses while the prior year period included expenses associated with an ERP implementation and an adverse administrative tax ruling in a foreign business unit. Operating expenses were 15.7 percent of sales in the fourth quarter of 2012 compared with 17.5 percent of sales in the prior year period. Operating margins of 9.9 percent increased from 8.4 percent in the prior year period.

Cash and cash equivalents of $143.4 million were $35.3 million higher compared to the end of the fourth quarter last year, while debt decreased $4.3 million.

Lindsay’s backlog of unshipped orders at August 31, 2012 was $57.1 million compared with $46.0 million at August 31, 2011 and $44.5 million at May 31, 2012.

Twelve Month Results

Total revenues for the year ended August 31, 2012 were $551.3 million, a 15 percent increase from $478.9 million for the prior year period. Total irrigation equipment revenues of $475.3 million increased 28 percent from a year ago, while infrastructure revenues decreased 30 percent to $76.0 million. The Company’s operating income for the twelve-month period was $65.5 million compared to $56.6 million during the same prior year period. Net earnings were $43.3 million or $3.38 per diluted share, as compared to $36.8 million, or $2.90 per diluted share for the prior year period.

Fiscal 2012 operating costs included $7.2 million of expenses accrued in the Company’s first fiscal quarter, or $0.37 per diluted share on an after tax basis, relating to an estimated increase in the Company’s liability for environmental remediation at its Lindsay, Nebraska facility. Comparatively, fiscal 2011 included environmental remediation expense of $1.3 million, or $0.07 per diluted share after tax.

Outlook

Rick Parod, president and chief executive officer, commented, “It has been a record year for Lindsay. Irrigation sales and profits have experienced year over year increases driven by positive farmer sentiment, farm incomes and commodity prices affected by the dry weather. These same positive factors have continued into the early months of fiscal 2013.”

Parod added, “Infrastructure performance in 2012 was constrained by global government spending. However, with the recent passage of a U.S. highway bill providing funding through 2014 and the progress we have made in reducing our cost structure, we expect sales growth and profit improvement in the infrastructure business in 2013. Overall the long term fundamentals of the business remain very positive, as growth drivers of population growth, expanded food production and efficient and environmentally friendly water use remain imperative.”

Fourth-Quarter Conference Call

Lindsay’s fiscal 2012 fourth quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (888) 321-8161 domestically, or (706) 758-0065 internationally, and referring to conference ID # 34441230. 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. Replays of the conference call will remain on our Web site through the end of the first quarter of fiscal 2013. 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 August 31, 2012, Lindsay had approximately 12.7 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.

For more information regarding Lindsay Corporation, see Lindsay's Web site at www.lindsay.com . For more information on the Company's infrastructure products, visit www.barriersystemsinc.com and www.snoline.com .

Concerning Forward-looking Statements

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 Twelve months ended
August 31, August 31,
($ in thousands, except per share amounts) 2012   2011   2012   2011  
 
Operating revenues $ 127,817 $ 116,110 $ 551,255 $ 478,890
Cost of operating revenues   95,069     86,056     402,737     349,105  
Gross profit   32,748     30,054     148,518     129,785  
 
Operating expenses:
Selling expense 6,968 6,984 28,104 27,842
General and administrative expense 10,434 10,898 38,198 33,659
Engineering and research expense 2,654 2,278 9,481 10,403
Environmental remediation expense   -     120     7,225     1,295  
Total operating expenses   20,056     20,280     83,008     73,199  
 
Operating income 12,692 9,774 65,510 56,586
 
Other income (expense):
Interest expense (116 ) (171 ) (492 ) (762 )
Interest income 177 165 504 315
Other income (expense), net   (100 )   9     (414 )   375  
 
Earnings before income taxes 12,653 9,777 65,108 56,514
 
Income tax provision   3,894     3,875     21,831     19,712  
 
Net earnings $ 8,759   $ 5,902   $ 43,277   $ 36,802  
 
Basic net earnings per share $ 0.69   $ 0.47   $ 3.41   $ 2.93  
 
Diluted net earnings per share $ 0.68   $ 0.46   $ 3.38   $ 2.90  
 
Weighted average shares outstanding 12,718 12,624 12,704 12,560
Diluted effect of stock equivalents   125     113     106     132  
 
Weighted average shares outstanding assuming dilution   12,843     12,737     12,810     12,692  
 
Cash dividends per share $ 0.115   $ 0.090   $ 0.385   $ 0.345  
 
 

Lindsay Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
       
(Unaudited)
August 31, August 31,
($ and shares in thousands, except par values) 2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 143,444 $ 108,167
Receivables, net 82,565 79,006
Inventories, net 52,873 49,524
Deferred income taxes 9,505 8,598
Other current assets   10,478     12,398  
Total current assets 298,865 257,693
 
Property, plant and equipment, net 56,180 58,465
Other intangible assets, net 25,070 28,639
Goodwill 29,961 30,943
Other noncurrent assets   5,455     5,404  
Total assets $ 415,531   $ 381,144  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 31,372 $ 32,153
Current portion of long-term debt 4,285 4,286
Other current liabilities   44,781     42,880  
Total current liabilities 80,438 79,319
 
Pension benefits liabilities 6,821 6,231
Long-term debt - 4,285
Deferred income taxes 9,984 12,550
Other noncurrent liabilities   7,450     3,094  
Total liabilities   104,693     105,479  
 
Shareholders' equity:
Preferred stock - -
Common stock 18,421 18,374
Capital in excess of stated value 43,140 39,058
Retained earnings 341,115 302,732
Less treasury stock (90,961 ) (90,961 )
Accumulated other comprehensive (loss) income, net   (877 )   6,462  
Total shareholders' equity   310,838     275,665  
Total liabilities and shareholders' equity $ 415,531   $ 381,144  
 
 

Lindsay Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
   
($ in thousands) Years Ended August 31,
2012   2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 43,277 $ 36,802
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 12,468 11,734
Provision for uncollectible accounts receivable 379 388
Deferred income taxes (3,868 ) (2,828 )
Share-based compensation expense 3,939 3,474
Other, net 959 208
Changes in assets and liabilities:
Receivables (7,570 ) (12,626 )
Inventories (5,609 ) (1,826 )
Other current assets (641 ) (1,430 )
Accounts payable 723 4,780
Other current liabilities (1,602 ) 8,223
Current taxes payable 5,408 (2,327 )
Other noncurrent assets and liabilities   4,576     (1,517 )
Net cash provided by operating activities   52,439     43,055  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (9,890 ) (8,405 )
Proceeds from sale of property, plant and equipment 116 80
Acquisition of business, net of cash acquired - (6,180 )
Proceeds (payment) for settlement of net investment hedge   2,925     (1,119 )
Net cash used in investing activities   (6,849 )   (15,624 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock under share-based compensation plans 567 3,579
Common stock withheld from share-based compensation for payroll tax withholdings (577 ) (843 )
Principal payments on long-term debt (4,286 ) (4,286 )
Excess tax benefits from share-based compensation 387 2,487
Dividends paid   (4,894 )   (4,342 )
Net cash used in financing activities   (8,803 )   (3,405 )
 
Effect of exchange rate changes on cash   (1,510 )   723  
Net increase in cash and cash equivalents 35,277 24,749
Cash and cash equivalents, beginning of period   108,167     83,418  
Cash and cash equivalents, end of period $ 143,444   $ 108,167  

Copyright Business Wire 2010

More from Press Releases

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

Meet the Real Money Pros: Market Strategies for 2012

Meet the Real Money Pros: Market Strategies for 2012