- Third quarter consolidated revenues increase 32 percent to
$214.3 million with EPS of $2.28
- Irrigation revenues increase 35 percent with an increase in
operating income of 65 percent
- Infrastructure revenues increase 17 percent as road
construction activity levels improve
Lindsay Corporation (NYSE: LNN), a leading global manufacturer
and distributor of irrigation and infrastructure equipment and
technology, today announced results for its third quarter of fiscal
2022, which ended on May 31, 2022.
Third Quarter Summary
Revenues for the third quarter of fiscal 2022 were $214.3
million, an increase of $52.3 million, or 32 percent, compared to
revenues of $161.9 million in the prior year third quarter. Net
earnings for the quarter were $25.1 million, or $2.28 per diluted
share, compared with net earnings of $17.8 million, or $1.60 per
diluted share, for the prior year third quarter.
“Global demand for irrigation equipment remained strong in our
third quarter, particularly in our international markets. While
inflationary pressures continue to persist, we were pleased to see
improved price realization across the business,” said Randy Wood,
President and Chief Executive Officer. “In the infrastructure
business, we are starting to see an increase in road construction
activity in the U.S., and we also began delivery of one of the Road
Zipper System projects we have been expecting in the second half of
our year.”
Third Quarter Segment Results
Irrigation segment revenues for the third quarter of fiscal 2022
were $188.7 million, an increase of $48.5 million, or 35 percent,
compared to $140.2 million in the prior year third quarter. North
America irrigation revenues of $96.2 million increased $8.8
million, or 10 percent, compared to the prior year third quarter.
The increase in North America irrigation revenues resulted
primarily from the impact of higher average selling prices, which
was partially offset by lower unit sales volume. International
irrigation revenues of $92.5 million increased $39.7 million, or 75
percent, compared to the prior year third quarter. The increase
resulted from a combination of higher average selling prices and
higher unit sales volumes in most international markets. Revenues
in Brazil more than doubled compared to the prior year third
quarter. Also contributing were favorable effects of foreign
currency translation of approximately $2.5 million compared to the
prior year third quarter.
Irrigation segment operating income for the third quarter of
fiscal 2022 was $39.6 million, an increase of $15.6 million, or 65
percent, compared to the prior year third quarter. Operating margin
was 21.0 percent of sales, compared to 17.1 percent of sales in the
prior year third quarter. The increase in operating margin resulted
from improved price realization and additional volume leverage,
which more than offset the impact of inflationary cost
increases.
Infrastructure segment revenues for the third quarter of fiscal
2022 were $25.6 million, an increase of $3.8 million, or 17
percent, compared to $21.7 million in the prior year third quarter.
The increase resulted from higher sales of road safety products and
Road Zipper System project sales, which were partially offset by
lower Road Zipper System lease revenue.
Infrastructure segment operating income for the third quarter of
fiscal 2022 was $3.8 million, which was comparable to the prior
year third quarter. Operating margin was 14.8 percent of sales,
compared to 17.3 percent of sales in the prior year third quarter.
Current year results reflect a less favorable margin mix of
revenues compared to the prior year third quarter and under
absorbed fixed overhead costs.
The backlog of unfilled orders at May 31, 2022 was $98.3 million
compared with $120.8 million at May 31, 2021. The backlog in the
prior year included an irrigation project order of $36.0 million.
Excluding the impact of this order, the irrigation backlog is
higher compared to the prior year while the infrastructure backlog
is lower.
Outlook
“Global agriculture market fundamentals remain positive;
however, grower sentiment in the U.S. is being tempered somewhat by
inflationary pressures they are experiencing with their input costs
and operational expenses. We continue to see increased activity
levels in international project markets as concerns over food
security and global grain supplies have been heightened by the
ongoing conflict between Russia and Ukraine,” said Mr. Wood. “In
the infrastructure business, we expect to complete delivery of the
Road Zipper System project that began in the third quarter, and we
also expect to begin delivery of another significant project in the
fourth quarter. We remain optimistic regarding growth opportunities
for this business based on the quality of our sales funnel and
increasing commercial activity.”
Third Quarter Conference Call
Lindsay’s fiscal 2022 third 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
Nine months ended
(in thousands, except per share
amounts)
May 31, 2022
May 31, 2021
May 31, 2022
May 31, 2021
Operating revenues
$
214,259
$
161,936
$
580,547
$
413,998
Cost of operating revenues
152,579
117,880
438,486
297,360
Gross profit
61,680
44,056
142,061
116,638
Operating expenses:
Selling expense
8,148
7,570
24,070
22,680
General and administrative expense
14,647
12,043
40,548
39,770
Engineering and research expense
3,723
3,102
10,582
9,504
Total operating expenses
26,518
22,715
75,200
71,954
Operating income
35,162
21,341
66,861
44,684
Other income (expense):
Interest expense
(1,006
)
(1,178
)
(3,345
)
(3,584
)
Interest income
118
227
456
798
Other income, net
1,282
764
264
699
Total other income (expense)
394
(187
)
(2,625
)
(2,087
)
Earnings before income taxes
35,556
21,154
64,236
42,597
Income tax expense
10,483
3,357
16,696
5,829
Net earnings
$
25,073
$
17,797
$
47,540
$
36,768
Earnings per share:
Basic
$
2.28
$
1.63
$
4.34
$
3.38
Diluted
$
2.28
$
1.61
$
4.31
$
3.35
Shares used in computing earnings per
share:
Basic
10,978
10,907
10,960
10,879
Diluted
11,021
11,033
11,020
10,967
Cash dividends declared per share
$
0.33
$
0.33
$
0.99
$
0.97
LINDSAY CORPORATION AND
SUBSIDIARIES
SUMMARY OPERATING
RESULTS
(Unaudited)
Three months ended
Nine months ended
(in thousands)
May 31, 2022
May 31, 2021
May 31, 2022
May 31, 2021
Operating revenues:
Irrigation:
North America
$
96,153
$
87,364
$
275,601
$
220,332
International
92,540
52,811
239,759
125,772
Irrigation segment
188,693
140,175
515,360
346,104
Infrastructure segment
25,566
21,761
65,187
67,894
Total operating revenues
$
214,259
$
161,936
$
580,547
$
413,998
Operating income:
Irrigation segment
$
39,567
$
23,925
$
81,513
$
52,603
Infrastructure segment
3,779
3,767
6,869
14,364
Corporate
(8,184
)
(6,351
)
(21,521
)
(22,283
)
Total operating income
$
35,162
$
21,341
$
66,861
$
44,684
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)
May 31, 2022
May 31, 2021
August 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
81,757
$
120,801
$
127,107
Marketable securities
13,930
19,663
19,604
Receivables, net
155,518
107,713
93,609
Inventories, net
195,566
136,601
145,244
Other current assets, net
28,663
32,947
30,539
Total current assets
475,434
417,725
416,103
Property, plant, and equipment, net
94,441
92,517
91,997
Intangibles, net
18,769
21,893
20,367
Goodwill
67,476
68,134
67,968
Operating lease right-of-use assets
20,263
19,360
18,281
Deferred income tax assets
7,857
10,247
8,113
Other noncurrent assets, net
27,676
12,341
14,356
Total assets
$
711,916
$
642,217
$
637,185
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
72,350
$
49,351
$
45,209
Current portion of long-term debt
221
216
217
Other current liabilities
101,243
94,589
92,814
Total current liabilities
173,814
144,156
138,240
Pension benefits liabilities
5,474
6,086
5,754
Long-term debt
115,384
115,557
115,514
Operating lease liabilities
20,688
19,369
18,301
Deferred income tax liabilities
730
881
832
Other noncurrent liabilities
15,056
19,995
20,099
Total liabilities
331,146
306,044
298,740
Shareholders' equity:
Preferred stock
—
—
—
Common stock
19,063
18,991
18,991
Capital in excess of stated value
92,516
85,257
86,495
Retained earnings
564,805
525,926
528,130
Less treasury stock - at cost
(277,238
)
(277,238
)
(277,238
)
Accumulated other comprehensive loss,
net
(18,376
)
(16,763
)
(17,933
)
Total shareholders' equity
380,770
336,173
338,445
Total liabilities and shareholders'
equity
$
711,916
$
642,217
$
637,185
LINDSAY CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended
(in thousands)
May 31, 2022
May 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings
$
47,540
$
36,768
Adjustments to reconcile net earnings to
net cash (used in) provided by operating activities:
Depreciation and amortization
14,930
14,688
Provision for uncollectible accounts
receivable
734
304
Deferred income taxes
514
205
Share-based compensation expense
4,061
5,021
Unrealized foreign currency transaction
gain
(754
)
(1,934
)
Other, net
645
(2,123
)
Changes in assets and liabilities:
Receivables
(63,365
)
(22,934
)
Inventories
(49,209
)
(28,612
)
Other current assets
1,669
(14,025
)
Accounts payable
26,319
20,828
Other current liabilities
822
20,149
Other noncurrent assets and
liabilities
(8,840
)
2,325
Net cash (used in) provided by operating
activities
(24,934
)
30,660
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and
equipment
(12,222
)
(22,532
)
Purchases of marketable securities
(18,468
)
(13,067
)
Proceeds from maturities of marketable
securities
23,592
12,592
Other investing activities, net
(2,952
)
(1,960
)
Net cash used in investing activities
(10,050
)
(24,967
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock
options
2,894
3,892
Common stock withheld for payroll tax
obligations
(1,181
)
(1,269
)
Proceeds from employee stock purchase
plan
319
—
Principal payments on long-term debt
(163
)
(141
)
Dividends paid
(10,865
)
(10,566
)
Net cash used in financing activities
(8,996
)
(8,084
)
Effect of exchange rate changes on cash
and cash equivalents
(1,370
)
1,789
Net change in cash and cash
equivalents
(45,350
)
(602
)
Cash and cash equivalents, beginning of
period
127,107
121,403
Cash and cash equivalents, end of
period
$
81,757
$
120,801
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220630005269/en/
LINDSAY CORPORATION: Brian Ketcham Senior Vice President
& Chief Financial Officer 402-827-6579
THREE PART ADVISORS: Jeff Elliott 972-423-7070 Gary
Guyton 214-442-0016
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