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| 8-K - FORM 8-K - LINDSAY CORP | c19461e8vk.htm |
EXHIBIT 99.1
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2222 NO. 111TH ST. OMAHA, NE 68164 TEL: 402-829-6800 FAX: 402-829-6836 |
For further information, contact:
LINDSAY CORPORATION:
|
HALLIBURTON INVESTOR RELATIONS: | |
Jim Raabe
|
Hala Elsherbini or Geralyn DeBusk | |
Vice President & Chief Financial Officer
|
972-458-8000 | |
402-827-6579 |
Lindsay Corporation Reports Fiscal 2011 Third Quarter Results
OMAHA, Neb., June 29, 2011—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation
systems and infrastructure products, today announced results for its fiscal third quarter ended May
31, 2011.
Third Quarter Results
Third quarter fiscal 2011 revenues of $153.4 million increased 53 percent from $100.1 million in
the same prior year period. Net earnings were $15.3 million or $1.20 per diluted share compared
with $6.2 million or $0.50 per diluted share, in the prior fiscal year’s third quarter.
Total irrigation equipment revenues increased 58 percent to $126.9 million from $80.4 million in
the prior fiscal year’s third quarter. U.S. irrigation revenues of $76.7 million increased 60
percent, while international irrigation revenues of $50.2 million increased 55 percent compared to
the same prior year period. Infrastructure revenues for the third quarter increased 35 percent to
$26.5 million.
Gross margin was 27.0 percent compared to 25.2 percent in the prior year’s third quarter. During
the fiscal third quarter overall gross margins improved on higher international irrigation margins
and on improved margins in diversified manufacturing which includes railroad signals and
structures, commercial tubing and contract manufacturing.
Operating expenses increased $3.2 million to $18.4 million compared to the third quarter of the
prior fiscal year. The increase in operating expenses included higher personnel related costs,
an incremental increase in expenses from the acquisitions of Digitec Inc., and WMC Technology
Limited, and additional expenses for environmental monitoring and remediation as part of ongoing
development and implementation of the EPA work plan at the Lindsay, Nebraska facility. Operating
expenses were 12.0 percent of revenue compared to 15.2 percent of revenue in the prior fiscal
year’s third quarter. Operating income was $23.1 million compared to $10.0 million in the same
prior year period.
Cash and cash equivalents of $100.6 million were $17.1 million higher compared with last year.
Debt decreased $4.3 million over the same period and $7.7 million of cash was used in acquisitions
completed in the past year. At May 31, 2011, accounts receivable and inventory balances were $36.5
million higher compared to the prior year due to increased business activity.
Lindsay’s backlog of unshipped orders at May 31, 2011 was $43.3 million compared with $64.3 million
at February 28, 2011 and $33.9 million at May 31, 2010.
Nine Month Results
Total revenues for the nine months ended May 31, 2011 were $362.8 million, a 34 percent increase
from $271.2 million compared to the same prior year period. Total irrigation equipment revenues of
$278.6 million increased 38 percent from a year ago, while infrastructure revenues increased 21
percent to $84.2 million. The Company’s operating income for the nine-month period was $46.8
million compared to $28.1 million during the same prior year period. Net earnings were $30.9
million or $2.44 per diluted share, as compared to $18.9 million, or $1.50 per diluted share for
the prior year period.
Outlook
Rick Parod, president and chief executive officer, commented, “Conditions in the global agriculture
markets continued to be strong throughout the primary irrigation selling season. Agricultural
commodity prices remain significantly higher compared to the previous year, creating favorable
economic conditions for growers, worldwide.”
Parod continued, “Infrastructure operating margin increased in the quarter due to operational
improvements implemented and leveraging expenses on a higher base revenue.”
Parod added, “For our business overall, the global, long-term drivers of water use efficiency,
population growth, increasing importance of biofuels, and improvements in infrastructure safety and
security remain positive.”
Third-Quarter Conference Call
Lindsay’s fiscal 2011 third quarter investor conference call is scheduled for 11:00 a.m. Eastern
Time today. Interested investors may participate in the call by dialing (888) 748-0479
domestically, or (706) 758-9823 internationally, and referring to conference ID # 75449355.
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. 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 May 31, 2011, Lindsay had approximately
12.6 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three months ended | Nine months ended | |||||||||||||||
| May 31, | May 31, | |||||||||||||||
| (in thousands, except per share amounts) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Operating revenues |
$ | 153,446 | $ | 100,073 | $ | 362,780 | $ | 271,239 | ||||||||
Cost of operating revenues |
111,947 | 74,818 | 263,049 | 198,051 | ||||||||||||
Gross profit |
41,499 | 25,255 | 99,731 | 73,188 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling expense |
6,929 | 5,909 | 20,858 | 16,683 | ||||||||||||
General and administrative expense |
8,640 | 7,348 | 23,936 | 22,963 | ||||||||||||
Engineering and research expense |
2,789 | 1,949 | 8,125 | 5,418 | ||||||||||||
Total operating expenses |
18,358 | 15,206 | 52,919 | 45,064 | ||||||||||||
Operating income |
23,141 | 10,049 | 46,812 | 28,124 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(192 | ) | (474 | ) | (591 | ) | (1,291 | ) | ||||||||
Interest income |
71 | 49 | 150 | 215 | ||||||||||||
Other income (expense), net |
139 | 12 | 366 | 72 | ||||||||||||
Earnings before income taxes |
23,159 | 9,636 | 46,737 | 27,120 | ||||||||||||
Income tax provision |
7,870 | 3,388 | 15,837 | 8,217 | ||||||||||||
Net earnings |
$ | 15,289 | $ | 6,248 | $ | 30,900 | $ | 18,903 | ||||||||
Basic net earnings per share |
$ | 1.22 | $ | 0.50 | $ | 2.46 | $ | 1.52 | ||||||||
Diluted net earnings per share |
$ | 1.20 | $ | 0.50 | $ | 2.44 | $ | 1.50 | ||||||||
Weighted average shares outstanding |
12,564 | 12,486 | 12,538 | 12,439 | ||||||||||||
Diluted effect of stock equivalents |
139 | 124 | 139 | 138 | ||||||||||||
Weighted average shares outstanding
assuming dilution |
12,703 | 12,610 | 12,677 | 12,577 | ||||||||||||
Cash dividends per share |
$ | 0.085 | $ | 0.080 | $ | 0.255 | $ | 0.240 | ||||||||
Lindsay Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS
| (Unaudited) | (Unaudited) | |||||||||||
| May 31, | May 31, | August 31, | ||||||||||
| ($ in thousands, except par values) | 2011 | 2010 | 2010 | |||||||||
ASSETS |
||||||||||||
Current Assets: |
||||||||||||
Cash and cash equivalents |
$ | 100,568 | $ | 83,509 | $ | 83,418 | ||||||
Receivables, net of allowance of $2,464, $2,246 and $2,244,
respectively |
87,588 | 56,804 | 63,629 | |||||||||
Inventories, net |
52,833 | 47,070 | 45,296 | |||||||||
Deferred income taxes |
6,798 | 5,974 | 6,722 | |||||||||
Other current assets |
12,177 | 9,071 | 8,946 | |||||||||
Total current assets |
259,964 | 202,428 | 208,011 | |||||||||
Property, plant and equipment, net |
57,279 | 56,379 | 57,646 | |||||||||
Other intangible assets, net |
27,430 | 26,728 | 27,715 | |||||||||
Goodwill, net |
28,815 | 23,292 | 27,395 | |||||||||
Other noncurrent assets |
4,318 | 5,652 | 4,714 | |||||||||
Total assets |
$ | 377,806 | $ | 314,479 | $ | 325,481 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
Current Liabilities: |
||||||||||||
Accounts payable |
$ | 42,966 | $ | 29,547 | $ | 26,501 | ||||||
Current portion of long-term debt |
4,286 | 4,286 | 4,286 | |||||||||
Other current liabilities |
40,445 | 29,981 | 36,295 | |||||||||
Total current liabilities |
87,697 | 63,814 | 67,082 | |||||||||
Pension benefits liabilities |
6,233 | 6,192 | 6,400 | |||||||||
Long-term debt |
5,357 | 9,643 | 8,571 | |||||||||
Deferred income taxes |
10,947 | 9,431 | 10,816 | |||||||||
Other noncurrent liabilities |
1,790 | 2,053 | 3,005 | |||||||||
Total liabilities |
112,024 | 91,133 | 95,874 | |||||||||
Shareholders’ equity: |
||||||||||||
Preferred stock, ($1 par value, 2,000,000 shares authorized, no shares
issued and outstanding) |
— | — | — | |||||||||
Common stock, ($1 par value, 25,000,000 shares authorized,
18,268,549, 18,184,620 and 18,184,820 shares issued at May 31, 2011
and 2010 and August 31, 2010, respectively) |
18,269 | 18,185 | 18,185 | |||||||||
Capital in excess of stated value |
34,162 | 30,515 | 30,756 | |||||||||
Retained earnings |
297,971 | 265,373 | 270,272 | |||||||||
Less treasury stock (at cost, 5,698,448 shares at
May 31, 2011 and 2010 and August 31, 2010, respectively) |
(90,961 | ) | (90,961 | ) | (90,961 | ) | ||||||
Accumulated other comprehensive income, net |
6,341 | 234 | 1,355 | |||||||||
Total shareholders’ equity |
265,782 | 223,346 | 229,607 | |||||||||
Total liabilities and shareholders’ equity |
$ | 377,806 | $ | 314,479 | $ | 325,481 | ||||||
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended | ||||||||
| May 31, | ||||||||
| ($ in thousands) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net earnings |
$ | 30,900 | $ | 18,903 | ||||
Adjustments to reconcile net earnings to net cash
provided by
operating activities: |
||||||||
Depreciation and amortization |
8,820 | 8,027 | ||||||
Provision for uncollectible accounts receivable |
248 | 568 | ||||||
Deferred income taxes |
(2,001 | ) | (990 | ) | ||||
Stock-based compensation expense |
2,384 | 1,755 | ||||||
Gain on disposal of fixed assets |
(43 | ) | (537 | ) | ||||
Other, net |
(307 | ) | 121 | |||||
Changes in assets and liabilities: |
||||||||
Receivables |
(21,326 | ) | (16,095 | ) | ||||
Inventories |
(5,330 | ) | (2,280 | ) | ||||
Other current assets |
(2,929 | ) | (3,127 | ) | ||||
Accounts payable |
15,441 | 10,439 | ||||||
Other current liabilities |
2,642 | (2,768 | ) | |||||
Current taxes payable |
853 | 2,285 | ||||||
Other noncurrent assets and liabilities |
(1,077 | ) | (1,513 | ) | ||||
Net cash provided by operating activities |
28,275 | 14,788 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchases of property, plant and equipment |
(5,315 | ) | (3,962 | ) | ||||
Proceeds from sale of property, plant and equipment |
57 | 577 | ||||||
Acquisition of business, net of cash acquired |
(1,279 | ) | (132 | ) | ||||
Payment for settlement of net investment hedge |
(1,261 | ) | 565 | |||||
Net cash used in investing activities |
(7,798 | ) | (2,952 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Issuance of common stock under stock compensation plans |
243 | 544 | ||||||
Principal payments on long-term debt |
(3,214 | ) | (11,697 | ) | ||||
Net borrowing on revolving line of credit |
1,212 | 345 | ||||||
Excess tax benefits from stock-based compensation |
1,068 | 368 | ||||||
Dividends paid |
(3,201 | ) | (2,991 | ) | ||||
Net cash used in financing activities |
(3,892 | ) | (13,431 | ) | ||||
Effect of exchange rate changes on cash |
565 | (825 | ) | |||||
Net increase (decrease) in cash and cash equivalents |
17,150 | (2,420 | ) | |||||
Cash and cash equivalents, beginning of period |
83,418 | 85,929 | ||||||
Cash and cash equivalents, end of period |
$ | 100,568 | $ | 83,509 | ||||