- Solid demand for irrigation equipment continued in the first
quarter across all geographies
- Irrigation revenues increase 50 percent in North America and 94
percent in international markets
- Infrastructure revenues decline slightly on lower Road Zipper
System® project sales
- First quarter net earnings reduced by after-tax LIFO impact of
$4.5 million, or $0.41 per diluted share
Lindsay Corporation (NYSE: LNN), a leading global manufacturer
and distributor of irrigation and infrastructure equipment and
technology, today announced results for its first quarter of fiscal
2022, which ended on November 30, 2021.
First Quarter Summary
Revenues for the first quarter of fiscal 2022 were $166.2
million, an increase of $57.7 million, or 53 percent, compared to
revenues of $108.5 million in the prior year first quarter. Net
earnings for the quarter were $7.9 million, or $0.72 per diluted
share, compared with net earnings of $7.1 million, or $0.65 per
diluted share, for the prior year first quarter. Net earnings for
the quarter were reduced by an after-tax LIFO impact of
approximately $4.5 million, or $0.41 per diluted share.
“Positive market fundamentals continue to support solid demand
for irrigation equipment across all geographies,” said Randy Wood,
President and Chief Executive Officer. “Raw material cost inflation
and supply chain issues continue to create challenges and limit
margin expansion. Our teams are managing well in this dynamic
environment in order to support our customers.”
First Quarter Segment Results
Irrigation segment revenues for the first quarter of fiscal 2022
were $145.9 million, an increase of $58.6 million, or 67 percent,
compared to $87.4 million in the prior year first quarter. North
America irrigation revenues of $79.0 million increased $26.2
million, or 50 percent, compared to the prior year first quarter.
The increase in North America irrigation revenues resulted from a
combination of higher irrigation equipment unit sales volume and
higher average selling prices. International irrigation revenues of
$66.9 million increased $32.4 million, or 94 percent, compared to
the prior year first quarter. The increase in international
irrigation revenues resulted primarily from higher unit sales
volumes, along with higher selling prices and a favorable foreign
currency translation impact of $1.1 million. The largest sales
volume increases were in the Brazil, Middle East, and Europe
markets.
Irrigation segment operating income for the first quarter of
fiscal 2022 was $17.2 million, an increase of $6.6 million, or 62
percent, compared to the prior year first quarter. Operating margin
was 11.8 percent of sales, compared to 12.2 percent of sales in the
prior year first quarter. The impact of higher irrigation system
unit volume was partially offset by the impact of higher costs of
raw materials and other inputs. First quarter operating results
were also reduced by approximately $5.0 million resulting from the
impact of the LIFO method of accounting for inventory, under which
higher raw material costs are recognized in cost of goods sold
rather than in ending inventory values.
Infrastructure segment revenues for the first quarter of fiscal
2022 were $20.2 million, a decrease of $0.9 million, or 4 percent,
compared to $21.1 million in the prior year first quarter. The
decrease resulted from lower Road Zipper System® sales, which were
partially offset by higher Road Zipper System lease revenue and
increased sales of road safety products compared to the prior
year.
Infrastructure segment operating income for the first quarter of
fiscal 2022 was $2.8 million, a decrease of $1.5 million, or 35
percent, compared to the prior year first quarter. Operating margin
was 13.7 percent of sales, compared to 20.1 percent of sales in the
prior year first quarter. Current year results reflect lower
revenues and a less favorable margin mix of revenues compared to
the prior year first quarter and were also reduced by approximately
$1.0 million resulting from the impact of the LIFO method of
accounting for inventory.
The backlog of unfilled orders at November 30, 2021 was $154.8
million compared with $89.2 million at November 30, 2020. A higher
backlog of orders in irrigation was partially offset by a lower
backlog in infrastructure.
Outlook
“Market conditions support continued solid demand for irrigation
equipment, and we also expect raw material cost inflation and
supply chain challenges to persist in the near term. We are focused
on protecting and improving margins in this environment,” said Mr.
Wood. “Regarding our infrastructure business, we continue to expect
an increase in project activity in the second half of the fiscal
year.”
Mr. Wood concluded, “We are sharply focused on our innovation
growth strategy that addresses the needs of a growing population
and provides solutions that improve efficiency and promote
sustainability.”
First Quarter Conference Call
Lindsay’s fiscal 2022 first quarter investor conference call is
scheduled for 11:00 a.m. Eastern Time today. Interested investors
may participate in the call by dialing (833) 535-2202 in the U.S.,
or (412) 902-6745 internationally, and requesting the Lindsay
Corporation call. 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 next quarterly earnings release. 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 Corporation (NYSE: LNN) is a leading global manufacturer
and distributor of irrigation and infrastructure equipment and
technology. Established in 1955, the company has been at the
forefront of research and development of innovative solutions to
meet the food, fuel, fiber and transportation needs of the world’s
rapidly growing population. The Lindsay family of irrigation brands
includes Zimmatic® center pivot and lateral move agricultural
irrigation systems, FieldNET® remote irrigation management and
scheduling technology, and industrial IoT solutions. Also a global
leader in the transportation industry, Lindsay Transportation
Solutions manufactures equipment to improve road safety and keep
traffic moving on the world’s roads, bridges and tunnels, through
the Barrier Systems®, Road Zipper® and Snoline™ brands. For more
information about Lindsay Corporation, visit www.lindsay.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 and planned financing 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 EARNINGS
(Unaudited)
Three months ended
(in thousands, except per share
amounts)
November 30, 2021
November 30, 2020
Operating revenues
$
166,152
$
108,485
Cost of operating revenues
128,714
77,077
Gross profit
37,438
31,408
Operating expenses:
Selling expense
7,990
7,331
General and administrative expense
12,880
13,452
Engineering and research expense
3,207
3,090
Total operating expenses
24,077
23,873
Operating income
13,361
7,535
Other (expense) income:
Interest expense
(1,163
)
(1,201
)
Interest income
177
303
Other expense, net
(2,900
)
246
Total other (expense) income
(3,886
)
(652
)
Earnings before income taxes
9,475
6,883
Income tax expense (benefit)
1,574
(212
)
Net earnings
$
7,901
$
7,095
Earnings per share:
Basic
$
0.72
$
0.65
Diluted
$
0.72
$
0.65
Shares used in computing earnings per
share:
Basic
10,927
10,845
Diluted
11,026
10,888
Cash dividends declared per share
$
0.33
$
0.32
LINDSAY CORPORATION AND
SUBSIDIARIES
SUMMARY OPERATING
RESULTS
(Unaudited)
Three months ended
(in thousands)
November 30, 2021
November 30, 2020
Operating revenues:
Irrigation:
North America
$
78,976
$
52,790
International
66,933
34,566
Irrigation segment
145,909
87,356
Infrastructure segment
20,243
21,129
Total operating revenues
$
166,152
$
108,485
Operating income (loss):
Irrigation segment
$
17,212
$
10,633
Infrastructure segment
2,766
4,256
Corporate
(6,617
)
(7,354
)
Total operating income
$
13,361
$
7,535
The Company manages its business activities in two reportable
segments as follows:
Irrigation - This reporting segment includes the manufacture and
marketing of center pivot, lateral move, and hose reel irrigation
systems, as well as various innovative technology solutions such as
GPS positioning and guidance, variable rate irrigation, remote
irrigation management and scheduling technology, irrigation
consulting and design and industrial IoT solutions.
Infrastructure – This reporting segment includes the manufacture
and marketing of moveable barriers, specialty barriers, crash
cushions and end terminals, and road marking and road safety
equipment.
LINDSAY CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(in thousands)
November 30, 2021
November 30, 2020
August 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
84,719
$
126,802
$
127,107
Marketable securities
30,195
19,624
19,604
Receivables, net
111,959
74,909
93,609
Inventories, net
173,115
114,278
145,244
Other current assets, net
26,345
20,837
30,539
Total current assets
426,333
356,450
416,103
Property, plant, and equipment, net
91,639
81,295
91,997
Intangibles, net
19,827
22,817
20,367
Goodwill
67,735
68,027
67,968
Operating lease right-of-use assets
17,584
26,008
18,281
Deferred income tax assets
6,157
9,924
8,113
Other noncurrent assets, net
20,170
10,681
14,356
Total assets
$
649,445
$
575,202
$
637,185
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
58,908
$
36,263
$
45,209
Current portion of long-term debt
219
214
217
Other current liabilities
88,655
65,910
92,814
Total current liabilities
147,782
102,387
138,240
Pension benefits liabilities
5,660
6,293
5,754
Long-term debt
115,471
115,641
115,514
Operating lease liabilities
17,679
24,863
18,301
Deferred income tax liabilities
798
902
832
Other noncurrent liabilities
20,112
21,215
20,099
Total liabilities
307,502
271,301
298,740
Shareholders' equity:
Preferred stock
—
—
—
Common stock
19,056
18,948
18,991
Capital in excess of stated value
89,006
78,026
86,495
Retained earnings
532,410
503,342
528,130
Less treasury stock - at cost
(277,238
)
(277,238
)
(277,238
)
Accumulated other comprehensive loss,
net
(21,291
)
(19,177
)
(17,933
)
Total shareholders' equity
341,943
303,901
338,445
Total liabilities and shareholders'
equity
$
649,445
$
575,202
$
637,185
LINDSAY CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
(in thousands)
November 30, 2021
November 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings
$
7,901
$
7,095
Adjustments to reconcile net earnings to
net cash (used in) provided by operating activities:
Depreciation and amortization
4,896
5,140
Provision for uncollectible accounts
receivable
91
158
Deferred income taxes
1,841
140
Share-based compensation expense
1,222
1,583
Unrealized foreign currency transaction
loss (gain)
2,193
(203
)
Other, net
292
36
Changes in assets and liabilities:
Receivables
(17,816
)
8,896
Inventories
(31,674
)
(8,294
)
Other current assets
5,965
(3,068
)
Accounts payable
12,462
7,286
Other current liabilities
(3,632
)
(7,146
)
Other noncurrent assets and
liabilities
(7,920
)
3,750
Net cash (used in) provided by operating
activities
(24,179
)
15,373
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and
equipment
(3,061
)
(5,614
)
Purchases of marketable securities
available-for-sale
(14,354
)
(3,844
)
Proceeds from maturities of marketable
securities available-for-sale
3,599
3,616
Other investing activities, net
(342
)
—
Net cash used in investing activities
(14,158
)
(5,842
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock
options
2,442
56
Common stock withheld for payroll tax
obligations
(1,181
)
(1,269
)
Proceeds from employee stock purchase
plan
93
—
Principal payments on long-term debt
(54
)
(35
)
Dividends paid
(3,621
)
(3,477
)
Net cash used in financing activities
(2,321
)
(4,725
)
Effect of exchange rate changes on cash
and cash equivalents
(1,730
)
593
Net change in cash and cash
equivalents
(42,388
)
5,399
Cash and cash equivalents, beginning of
period
127,107
121,403
Cash and cash equivalents, end of
period
$
84,719
$
126,802
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220105006035/en/
LINDSAY CORPORATION: Brian Ketcham Senior Vice President
& Chief Financial Officer 402-827-6579 THREE PART
ADVISORS: Hala Elsherbini 214-442-0016
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