- Fourth quarter consolidated earnings triple to $17.9 million
with EPS of $1.62
- Fourth quarter Irrigation revenues increase on strong unit
volume growth in North America
- Fourth quarter Infrastructure revenues increase on improved
Road Zipper System® sales
- Full year consolidated results reach all-time highs of $770.7
million in revenues and EPS of $5.94
Lindsay Corporation (NYSE: LNN), a leading global manufacturer
and distributor of irrigation and infrastructure equipment and
technology, today announced results for its fourth quarter and
fiscal year, which ended on August 31, 2022.
Fourth Quarter and Full Year Summary
Revenues for the fourth quarter of fiscal 2022 were $190.2
million, an increase of $36.5 million, or 24 percent, compared to
revenues of $153.6 million in the prior year fourth quarter. Net
earnings for the quarter were $17.9 million, or $1.62 per diluted
share, compared with net earnings of $5.8 million, or $0.53 per
diluted share, for the prior year fourth quarter.
Revenues for the year ended August 31, 2022 were $770.7 million,
an increase of $203.1 million, or 36 percent, compared to revenues
of $567.6 million in the prior year. Net earnings for the year were
$65.5 million, or $5.94 per diluted share, compared with net
earnings of $42.6 million, or $3.88 per diluted share, for the
prior year.
“Demand for irrigation equipment remained strong across all
geographies in our fourth quarter, particularly in North America
where damage to existing systems due to severe weather in the
Midwest resulted in a large increase in replacement sales. In the
infrastructure business, fourth quarter revenue growth was driven
by an increase in Road Zipper sales as we began delivery of a large
project we had been expecting in the second half of our fiscal
year,” said Randy Wood, President and Chief Executive Officer. “For
the full year, strong growth in our irrigation business led to
record consolidated revenues of $770.7 million. We were also
pleased that, through effective price management and improved
operating performance, we were able to overcome the inflationary
headwinds we faced earlier in the year to deliver results that met
our annual operating margin objective of 12 percent.”
Fourth Quarter Segment Results
Irrigation segment revenues for the fourth quarter of fiscal
2022 were $150.5 million, an increase of $25.2 million, or 20
percent, compared to $125.3 million in the prior year fourth
quarter. North America irrigation revenues of $80.1 million
increased $26.5 million, or 50 percent, compared to the prior year
fourth quarter. The increase in North America irrigation revenues
resulted from higher unit sales volumes and higher average selling
prices. Higher unit sales volumes resulted primarily from increased
storm damage replacement demand compared to the prior year fourth
quarter. International irrigation revenues of $70.4 million
decreased $1.3 million, or 2 percent, including unfavorable effects
of foreign currency translation of approximately $3.5 million
compared to the prior year fourth quarter. Strong sales growth in
Brazil, Europe and other markets more than offset the impact of a
large project in Egypt in the prior year that did not repeat.
Irrigation segment operating income for the fourth quarter of
fiscal 2022 was $24.2 million, an increase of $13.6 million, or 129
percent, compared to the prior year fourth quarter. Operating
margin was 16.1 percent of sales, compared to 8.4 percent of sales
in the prior year fourth quarter. Increased operating income and
margin resulted from higher unit sales volumes, improved price
realization and lower inflationary headwinds compared to the prior
year fourth quarter.
Infrastructure segment revenues for the fourth quarter of fiscal
2022 were $39.7 million, an increase of $11.3 million, or 40
percent, compared to $28.4 million in the prior year fourth
quarter. The increase resulted from higher Road Zipper System
project sales, which were partially offset by lower Road Zipper
System lease revenue.
Infrastructure segment operating income for the fourth quarter
of fiscal 2022 was $11.5 million, an increase of $5.7 million or 97
percent compared to the prior year fourth quarter. Operating margin
was 28.8 percent of sales, compared to 20.5 percent of sales in the
prior year fourth quarter, which is largely due to the increase in
Road Zipper System sales.
The backlog of unfilled orders at August 31, 2022 was $96.8
million compared with $149.1 million at August 31, 2021. The
irrigation backlog is lower compared to the prior year while the
infrastructure backlog is higher.
Outlook
“Current commodity prices and net farm income projections
support a positive outlook for North America irrigation equipment
demand for the fall selling season, however the ongoing impacts
from inflation and supply chain challenges can also impact capital
investment decisions for farmers. We expect growth in international
markets through expanded production driven by positive agricultural
market fundamentals and continuing concerns over food security and
global grain supplies,” said Mr. Wood. “In the infrastructure
business, we expect to continue delivery of the large Road Zipper
System project during the first quarter of fiscal 2023, and
expectations for continued growth in this business are supported by
an anticipated increase in U.S. infrastructure spending and by the
ongoing management of our project sales funnel.”
Fourth Quarter Conference Call
Lindsay’s fiscal 2022 fourth 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 August
31,
Years Ended August 31,
(in thousands, except per share
amounts)
2022
2021
2022
2021
Operating revenues
$
190,196
$
153,648
$
770,743
$
567,646
Cost of operating revenues
133,079
120,081
571,565
417,441
Gross profit
57,117
33,567
199,178
150,205
Operating expenses:
Selling expense
9,850
8,136
33,920
30,816
General and administrative expense
14,922
12,153
55,470
51,923
Engineering and research expense
4,563
3,855
15,145
13,359
Total operating expenses
29,335
24,144
104,535
96,098
Operating income
27,782
9,423
94,643
54,107
Other (expense) income:
Interest expense
(924
)
(1,167
)
(4,269
)
(4,751
)
Interest income
166
285
622
1,083
Other expense, net
(3,392
)
(752
)
(3,128
)
(53
)
Total other (expense) income
(4,150
)
(1,634
)
(6,775
)
(3,721
)
Earnings before income taxes
23,632
7,789
87,868
50,386
Income tax expense
5,703
1,985
22,399
7,814
Net earnings
$
17,929
$
5,804
$
65,469
$
42,572
Earnings per share:
Basic
$
1.63
$
0.53
$
5.97
$
3.91
Diluted
$
1.62
$
0.53
$
5.94
$
3.88
Shares used in computing earnings per
share:
Basic
10,980
10,907
10,965
10,886
Diluted
11,063
11,039
11,031
10,985
Cash dividends declared per share
$
0.34
$
0.33
$
1.33
$
1.30
LINDSAY CORPORATION AND
SUBSIDIARIES
SUMMARY OPERATING
RESULTS
(Unaudited)
Three months ended
Twelve months ended
(in thousands)
August 31,
2022
August 31,
2021
August 31,
2022
August 31,
2021
Operating revenues:
Irrigation:
North America
$
80,082
$
53,539
$
355,683
$
273,871
International
70,387
71,715
310,146
197,487
Irrigation total
150,469
125,254
665,829
471,358
Infrastructure
39,727
28,394
104,914
96,288
Total operating revenues
$
190,196
$
153,648
$
770,743
$
567,646
Operating income:
Irrigation
$
24,250
$
10,578
$
105,763
$
63,181
Infrastructure
11,459
5,810
18,328
20,174
Corporate
(7,927
)
(6,965
)
(29,448
)
(29,248
)
Total operating income
$
27,782
$
9,423
$
94,643
$
54,107
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)
August 31,
2022
August 31,
2021
ASSETS
Current assets:
Cash and cash equivalents
$
105,048
$
127,107
Marketable securities
11,460
19,604
Receivables, net of allowance of $4,118
and $3,422, respectively
138,200
93,609
Inventories, net
193,776
145,244
Other current assets
28,617
30,539
Total current assets
477,101
416,103
Property, plant, and equipment, net
94,472
91,997
Intangible assets, net
18,208
20,367
Goodwill
67,130
67,968
Operating lease right-of-use assets
19,181
18,281
Deferred income tax assets
9,313
8,113
Other noncurrent assets
25,248
14,356
Total assets
$
710,653
$
637,185
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
60,036
$
45,209
Current portion of long-term debt
222
217
Other current liabilities
100,684
92,814
Total current liabilities
160,942
138,240
Pension benefits liabilities
4,892
5,754
Long-term debt
115,341
115,514
Operating lease liabilities
19,810
18,301
Deferred income tax liabilities
1,054
832
Other noncurrent liabilities
15,256
20,099
Total liabilities
317,295
298,740
Shareholders' equity:
Preferred stock
—
—
Common stock
19,063
18,991
Capital in excess of stated value
94,006
86,495
Retained earnings
579,000
528,130
Less treasury stock - at cost
(277,238
)
(277,238
)
Accumulated other comprehensive loss,
net
(21,473
)
(17,933
)
Total shareholders' equity
393,358
338,445
Total liabilities and shareholders'
equity
$
710,653
$
637,185
LINDSAY CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Years Ended August 31,
(in thousands)
2022
2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings
$
65,469
$
42,572
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
20,178
19,177
Provision for uncollectible accounts
receivable
903
771
Deferred income taxes
(2,063
)
1,911
Share-based compensation expense
5,458
6,186
Foreign currency transaction loss
(gain)
2,274
(1,934
)
Other, net
695
(828
)
Changes in assets and liabilities:
Receivables
(47,514
)
(11,535
)
Inventories
(53,803
)
(38,158
)
Other current assets
1,220
(8,132
)
Accounts payable
13,832
17,993
Other current liabilities
186
18,433
Other noncurrent assets and
liabilities
(3,787
)
(2,488
)
Net cash provided by operating
activities
3,048
43,968
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and
equipment
(15,595
)
(26,511
)
Purchases of marketable securities
available-for-sale
(18,468
)
(19,356
)
Proceeds from maturities of marketable
securities available-for-sale
25,968
18,825
Other investing activities, net
(855
)
(577
)
Net cash used in investing activities
(8,950
)
(27,619
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock
options
2,894
3,965
Common stock withheld for payroll tax
obligations
(1,181
)
(1,269
)
Proceeds from employee stock purchase
plan
412
—
Principal payments on long-term debt
(218
)
(195
)
Dividends paid
(14,599
)
(14,166
)
Net cash used in financing activities
(12,692
)
(11,665
)
Effect of exchange rate changes on cash
and cash equivalents
(3,465
)
1,020
Net change in cash and cash
equivalents
(22,059
)
5,704
Cash and cash equivalents, beginning of
period
127,107
121,403
Cash and cash equivalents, end of
period
$
105,048
$
127,107
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221019006187/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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