- First quarter net earnings more than double to $18.2 million
and EPS improves to $1.65
- Irrigation revenues increase 4 percent on higher pricing and
solid demand across core markets
- Infrastructure revenues increase 19 percent on higher Road
Zipper System® sales
Lindsay Corporation (NYSE: LNN), a leading global manufacturer
and distributor of irrigation and infrastructure equipment and
technology, today announced results for its first quarter which
ended on November 30, 2022.
First Quarter Summary
Revenues for the first quarter of fiscal 2023 were $176.2
million, an increase of $10.0 million, or 6 percent, compared to
revenues of $166.2 million in the prior year first quarter. Net
earnings for the quarter were $18.2 million, or $1.65 per diluted
share, compared with net earnings of $7.9 million, or $0.72 per
diluted share, for the prior year first quarter.
“Positive market fundamentals continue to support solid demand
for irrigation equipment across our core markets,” said Randy Wood,
President and Chief Executive Officer. "Improved price realization
and reduced inflationary headwinds compared to the same prior year
period contributed to operating income growth and margin expansion
in our irrigation business. In our infrastructure business,
increased Road Zipper System sales resulted from the completion of
a large project that began in our prior year fourth quarter."
First Quarter Segment Results
Irrigation segment revenues for the first quarter of fiscal 2023
were $152.1 million, an increase of $6.2 million, or 4 percent,
compared to $145.9 million in the prior year first quarter. North
America irrigation revenues of $83.9 million increased $5.0
million, or 6 percent, compared to the prior year first quarter.
The increase in North America irrigation revenues resulted
primarily from higher average selling prices as unit sales volume
was comparable to the prior year first quarter. International
irrigation revenues of $68.1 million increased $1.2 million, or 2
percent. Higher sales in Brazil and other markets more than offset
the impact of lower sales in Ukraine and Russia and a large Egypt
project in the prior year first quarter that did not repeat. The
current year was also impacted by the unfavorable effects of
foreign currency translation of approximately $1.6 million compared
to the prior year first quarter.
Irrigation segment operating income for the first quarter of
fiscal 2023 was $28.6 million, an increase of $11.4 million, or 66
percent, compared to the prior year first quarter. Operating margin
was 18.8 percent of sales, compared to 11.8 percent of sales in the
prior year first quarter. Increased operating income and operating
margin resulted primarily from improved price realization, lower
inflationary impact on input costs and a more favorable margin mix
of international irrigation revenues compared to the prior year
first quarter.
Infrastructure segment revenues for the first quarter of fiscal
2023 were $24.1 million, an increase of $3.8 million, or 19
percent, compared to $20.2 million in the prior year first quarter.
The increase resulted from higher Road Zipper System sales, which
were partially offset by lower Road Zipper System lease revenue and
lower sales of road safety products.
Infrastructure segment operating income for the first quarter of
fiscal 2023 was $3.4 million, an increase of $0.6 million or 22
percent compared to the prior year first quarter. Operating margin
was 14.0 percent of sales, compared to 13.7 percent of sales in the
prior year first quarter. Increased operating income and operating
margin resulted primarily from higher revenues and lower
inflationary impact on input costs compared to the prior year first
quarter. This increase was partially offset by a less favorable
margin mix of revenues compared to the prior year first
quarter.
The backlog of unfilled orders at November 30, 2022 was $129.6
million compared with $154.8 million at November 30, 2021. The
irrigation and infrastructure backlog are both lower compared to
the prior year first quarter.
Outlook
“Current commodity price levels and net farm income projections
support a positive outlook for North America irrigation equipment
demand in the near term. We expect demand in international markets
to be supported by 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 growth to be supported by an
anticipated increase in U.S. infrastructure spending and by the
ongoing management of our project sales funnel.”
First Quarter Conference Call
Lindsay’s fiscal 2023 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, 2022
November 30, 2021
Operating revenues
$
176,159
$
166,152
Cost of operating revenues
123,139
128,714
Gross profit
53,020
37,438
Operating expenses:
Selling expense
9,677
7,990
General and administrative expense
14,437
12,880
Engineering and research expense
4,308
3,207
Total operating expenses
28,422
24,077
Operating income
24,598
13,361
Other income (expense):
Interest expense
(909
)
(1,163
)
Interest income
373
177
Other expense, net
(57
)
(2,900
)
Total other income (expense)
(593
)
(3,886
)
Earnings before income taxes
24,005
9,475
Income tax expense
5,788
1,574
Net earnings
$
18,217
$
7,901
Earnings per share:
Basic
$
1.66
$
0.72
Diluted
$
1.65
$
0.72
Shares used in computing earnings per
share:
Basic
10,989
10,927
Diluted
11,073
11,026
Cash dividends declared per share
$
0.34
$
0.33
LINDSAY CORPORATION AND
SUBSIDIARIES
SUMMARY OPERATING
RESULTS
(Unaudited)
Three months ended
(in thousands)
November 30, 2022
November 30, 2021
Operating revenues:
Irrigation:
North America
$
83,934
$
78,976
International
68,149
66,933
Irrigation segment
152,083
145,909
Infrastructure segment
24,076
20,243
Total operating revenues
$
176,159
$
166,152
Operating income:
Irrigation segment
$
28,641
$
17,212
Infrastructure segment
3,372
2,766
Corporate
(7,415
)
(6,617
)
Total operating income
$
24,598
$
13,361
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, 2022
November 30, 2021
August 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
99,168
$
84,719
$
105,048
Marketable securities
11,424
30,195
11,460
Receivables, net
157,116
111,959
138,200
Inventories, net
188,404
173,115
193,776
Other current assets, net
25,295
26,345
28,617
Total current assets
481,407
426,333
477,101
Property, plant, and equipment, net
93,518
91,639
94,472
Intangibles, net
17,760
19,827
18,208
Goodwill
67,295
67,735
67,130
Operating lease right-of-use assets
18,477
17,584
19,181
Deferred income tax assets
8,117
6,157
9,313
Other noncurrent assets, net
21,722
20,170
25,248
Total assets
$
708,296
$
649,445
$
710,653
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
58,535
$
58,908
$
60,036
Current portion of long-term debt
223
219
222
Other current liabilities
89,827
88,655
100,684
Total current liabilities
148,585
147,782
160,942
Pension benefits liabilities
4,812
5,660
4,892
Long-term debt
115,297
115,471
115,341
Operating lease liabilities
19,161
17,679
19,810
Deferred income tax liabilities
693
798
1,054
Other noncurrent liabilities
14,960
20,112
15,256
Total liabilities
303,508
307,502
317,295
Shareholders' equity:
Preferred stock
—
—
—
Common stock
19,090
19,056
19,063
Capital in excess of stated value
93,079
89,006
94,006
Retained earnings
593,475
532,410
579,000
Less treasury stock - at cost
(277,238
)
(277,238
)
(277,238
)
Accumulated other comprehensive loss,
net
(23,618
)
(21,291
)
(21,473
)
Total shareholders' equity
404,788
341,943
393,358
Total liabilities and shareholders'
equity
$
708,296
$
649,445
$
710,653
LINDSAY CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
(in thousands)
November 30, 2022
November 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings
$
18,217
$
7,901
Adjustments to reconcile net earnings to
net cash provided by (used in) operating activities:
Depreciation and amortization
4,871
4,896
Provision for uncollectible accounts
receivable
704
91
Deferred income taxes
1,129
1,841
Share-based compensation expense
1,473
1,222
Unrealized foreign currency transaction
(gain) loss
(83
)
2,193
Other, net
289
292
Changes in assets and liabilities:
Receivables
(19,828
)
(17,816
)
Inventories
4,803
(31,674
)
Other current assets
3,526
5,965
Accounts payable
123
12,462
Other current liabilities
(11,898
)
(3,632
)
Other noncurrent assets and
liabilities
1,356
(7,920
)
Net cash provided by (used in) operating
activities
4,682
(24,179
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and
equipment
(3,798
)
(3,061
)
Purchases of marketable securities
—
(14,354
)
Proceeds from maturities of marketable
securities
—
3,599
Other investing activities, net
(384
)
(342
)
Net cash used in investing activities
(4,182
)
(14,158
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock
options
—
2,442
Common stock withheld for payroll tax
obligations
(2,471
)
(1,181
)
Proceeds from employee stock purchase
plan
98
93
Principal payments on long-term debt
(55
)
(54
)
Dividends paid
(3,742
)
(3,621
)
Net cash used in financing activities
(6,170
)
(2,321
)
Effect of exchange rate changes on cash
and cash equivalents
(210
)
(1,730
)
Net change in cash and cash
equivalents
(5,880
)
(42,388
)
Cash and cash equivalents, beginning of
period
105,048
127,107
Cash and cash equivalents, end of
period
$
99,168
$
84,719
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230104005977/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
Lindsay (NYSE:LNN)
Historical Stock Chart
From May 2023 to Jun 2023
Lindsay (NYSE:LNN)
Historical Stock Chart
From Jun 2022 to Jun 2023
