Lindsay Corporation Reports Fiscal 2013 First Quarter Results

Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its first quarter ended November 30, 2012.

First Quarter Results

First quarter fiscal 2013 revenues of $147.4 million increased 24 percent from $119.2 million in the same prior year period. Net earnings were $14.7 million or $1.15 per diluted share compared with $2.9 million or $0.23 per diluted share in the prior year. Fiscal 2012 operating costs included $7.2 million of accrued expenses, 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.

Total irrigation equipment revenues increased 33 percent to $134.2 million from $100.8 million in the prior fiscal year’s first quarter. Domestic irrigation revenues of $96.5 million increased 59 percent, while international irrigation revenues of $37.7 million decreased 6 percent due to lower project revenues in the Middle East. Infrastructure revenues decreased 29 percent to $13.2 million.

Gross margin was 29.1 percent compared to 25.4 percent in the prior year’s first quarter. Irrigation gross margins increased by approximately 4 percentage points due to lower input costs, a strong pricing environment and fixed cost leverage on higher sales. Infrastructure margins decreased by approximately 4 percentage points due to sales mix and deleverage of fixed costs from lower sales.

Operating expenses were $20.6 million compared to $25.2 million in prior fiscal year. Current year expenses included higher personnel related expenses and increased research and development, while the prior year period included accrued environmental expenses of $7.2 million. Operating expenses were 14.0 percent of sales in the first quarter of fiscal 2013 compared with 21.1 percent of sales in the prior year period. Operating margins of 15.1 percent increased from 4.3 percent in the prior year period.

Cash and cash equivalents of $152.2 million were $43.4 million higher compared to the end of the first quarter last year, while debt decreased $4.3 million.

Backlog of unshipped orders at November 30, 2012 was $85.1 million compared with $52.8 million at November 30, 2011 and $57.1 million at August 31, 2012.

Outlook

Rick Parod, president and chief executive officer, commented, “Irrigation order volumes remained extremely robust throughout the first quarter as drought conditions combined with positive farmer sentiment, farm incomes and commodity prices continued into fiscal 2013. Infrastructure sales were disappointing, although we remain optimistic that we will see improving trends over the course of the year.”

Parod added, “We believe the quarter end backlog represents pulling forward some volume, at least in part, from the second half of fiscal 2013. As is always the case, full year results will be dependent on conditions for agriculture equipment sales through the peak selling season this spring. 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.”

First-Quarter Conference Call

Lindsay’s fiscal 2013 first 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 # 82593517. 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 second 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 November 30, 2012 Lindsay had approximately 12.8 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
   
Three months ended
November 30, November 30,
($ and shares in thousands, except per share amounts) 2012 2011
 
Operating revenues $ 147,370 $ 119,205
Cost of operating revenues   104,513     88,957  
Gross profit   42,857     30,248  
 
Operating expenses:
Selling expense 7,321 6,944
General and administrative expense 10,118 8,940
Engineering and research expense 3,154 2,056
Environmental remediation expense   -     7,225  
Total operating expenses   20,593     25,165  
 
Operating income 22,264 5,083
 
Other income (expense):
Interest expense (143 ) (143 )
Interest income 138 96
Other income (expense), net   124     (595 )
 
Earnings before income taxes 22,383 4,441
 
Income tax expense   7,655     1,520  
 
Net earnings $ 14,728   $ 2,921  
 
Earnings per share:
Basic $ 1.15 $ 0.23
Diluted $ 1.15 $ 0.23
 
Shares used in computing earnings per share:
Basic 12,756 12,682
Diluted 12,853 12,764
 
Cash dividends declared per share $ 0.115 $ 0.090
 
 
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
   
Three months ended
November 30, November 30,
($ in thousands) 2012 2011
 
Net earnings $ 14,728   $ 2,921  
Other comprehensive income (loss):
Defined benefit pension plan adjustment, net of tax 33 26
Unrealized gain on cash flow hedges, net of tax 26 72
Foreign currency translation adjustment, net of hedging activities, net of tax   (41 )   (4,131 )
Total other comprehensive income (loss), net of tax
(benefit) expense of ($393) and $139   18     (4,033 )
Total comprehensive income (loss) $ 14,746   $ (1,112 )
 
 
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
     
November 30, November 30, August 31,
($ and shares in thousands, except par values) 2012 2011 2012
 
ASSETS
Current Assets:
Cash and cash equivalents $ 152,173 $ 108,731 $ 143,444
Receivables, net of allowance of $1,645, $2,171 and $1,717 88,893 76,671 82,565
Inventories, net 67,250 57,646 52,873
Deferred income taxes 8,171 8,980 9,505
Other current assets   10,719     11,787     10,478  
Total current assets   327,206     263,815     298,865  
 
Property, Plant and Equipment:
Cost 139,032 131,555 136,695
Less accumulated depreciation   (82,947 )   (74,580 )   (80,515 )
Property, plant and equipment, net   56,085     56,975     56,180  
 
Intangibles, net 24,410 27,494 25,070
Goodwill 30,114 30,390 29,961
Other noncurrent assets   5,063     5,408     5,455  
Total assets $ 442,878   $ 384,082   $ 415,531  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 50,662 $ 39,955 $ 31,372
Current portion of long-term debt 3,214 4,286 4,285
Other current liabilities   39,141     38,072     44,781  
Total current liabilities   93,017     82,313     80,438  
 
Pension benefits liabilities 6,749 6,173 6,821
Long-term debt - 3,214 -
Deferred income taxes 9,622 10,433 9,984
Other noncurrent liabilities   7,417     8,128     7,450  
Total liabilities   116,805     110,261     104,693  
 
Shareholders' Equity:
Preferred stock of $1 par value-
Authorized 2,000 shares; none issued - - -
Common stock of $1 par value-
Authorized 25,000 shares; 18,531 issued 18,531 18,397 18,421
Capital in excess of stated value 44,995 39,446 43,140
Retained earnings 354,367 304,510 341,115
Less treasury stock (at cost, 5,698 shares) (90,961 ) (90,961 ) (90,961 )
Accumulated other comprehensive (loss) income, net   (859 )   2,429     (877 )
Total shareholders' equity   326,073     273,821     310,838  
Total liabilities and shareholders' equity $ 442,878   $ 384,082   $ 415,531  
 
 
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
   
Three months ended
November 30, November 30,
($ in thousands) 2012 2011
 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 14,728 $ 2,921
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization 3,130 3,125
Provision for uncollectible accounts receivable 199 47
Deferred income taxes (782 ) (2,596 )
Share-based compensation expense 1,219 898
Other, net 157 1,014
Changes in assets and liabilities:
Receivables (6,441 ) 162
Inventories (14,341 ) (9,565 )
Other current assets (357 ) (928 )
Accounts payable 19,210 8,775
Other current liabilities (4,396 ) (6,399 )
Current taxes payable 1,312 3,553
Other noncurrent assets and liabilities   (181 )   5,200  
Net cash provided by operating activities   13,457     6,207  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (2,215 ) (2,632 )
(Payment) proceeds for settlement of net investment hedge   (1,093 )   476  
Net cash used in investing activities   (3,308 )   (2,156 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options 1,082 -
Common stock withheld for payroll tax withholdings (2,441 ) (579 )
Principal payments on long-term debt (1,072 ) (1,071 )
Excess tax benefits from share-based compensation 2,185 135
Dividends paid   (1,476 )   (1,143 )
Net cash used in financing activities   (1,722 )   (2,658 )
 
Effect of exchange rate changes on cash and cash equivalents   302     (829 )
Net change in cash and cash equivalents 8,729 564
Cash and cash equivalents, beginning of period   143,444     108,167  
Cash and cash equivalents, end of period $ 152,173   $ 108,731  

Copyright Business Wire 2010

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