Lindsay Corporation Reports Fiscal 2013 First Quarter Results
OMAHA, Neb.--(BUSINESS WIRE)--
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
Lindsay Corporation Jim Raabe, 402-827-6579 Vice
President & Chief Financial Officer or Halliburton
Investor Relations Hala Elsherbini or Geralyn DeBusk,
972-458-8000
Press Release $LNN Lindsay Corporation
OMAHA, Neb.--(BUSINESS WIRE)-- 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
Jim Raabe, 402-827-6579
Vice President & Chief Financial Officer
or
Halliburton Investor Relations
Hala Elsherbini or Geralyn DeBusk, 972-458-8000
Source: Lindsay Corporation