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8-K - FORM 8-K - LINDSAY CORPd325496d8k.htm

Exhibit 99.1

 

LOGO    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 2012 Second Quarter Results

OMAHA, Neb., March 28, 2012—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its second quarter ended February 29, 2012.

Second Quarter Results

Second quarter fiscal 2012 total revenues of $132.1 million increased 10 percent from $120.2 million in the same prior year period. Net earnings were $12.8 million or $1.00 per diluted share compared with $11.3 million or $0.89 per diluted share in the prior fiscal year’s second quarter.

Total irrigation equipment revenues increased 28 percent to $117.0 million from $91.7 million in the prior fiscal year’s second quarter. Domestic irrigation revenues of $82.9 million increased 25 percent, while international irrigation revenues of $34.1 million increased 36 percent as compared to the same prior year period. Infrastructure revenues decreased 47 percent to $15.1 million due mostly to lower sales and leases of Quick-Change Moveable Barrier (QMB) systems.

Gross margin was 27.6 percent compared to 28.3 percent in the prior year’s second quarter. Total gross margins were lower primarily due to lower revenues of higher-margin QMB product as compared to the same period last year. Irrigation gross margins improved compared to the same quarter last year due to cost leverage and productivity gains on higher sales volumes. Infrastructure gross margins declined compared to the year ago period, but improved excluding QMB.

Operating expenses were $17.5 million in the quarter compared to $16.9 million in the second quarter of the prior fiscal year. The primary elements of the expense increase related to an acquired company purchased in fiscal 2011 and personnel related costs. Operating expenses were 13.3 percent of sales in the second quarter of 2012 compared with 14.1 percent of sales in the prior year period. Operating margins of 14.3 percent increased slightly from 14.2 percent in the prior year period.

Cash and cash equivalents of $105.0 million were $26.5 million higher compared with the end of the second quarter last year, while debt decreased $4.3 million over the same period.

Lindsay’s backlog of unshipped orders at February 29, 2012 was $87.3 million compared with $64.3 million at February 28, 2011 and $52.8 million at November 30, 2011.

Six Month Results

Total revenues for the six months ended February 29, 2012 were $251.3 million, a 20 percent increase from $209.3 million for the prior year’s six-month period. Total irrigation equipment revenues of $217.7 million increased 44 percent from a year ago, while infrastructure revenues decreased 42 percent to $33.6 million. The Company’s


operating income for the six-month period was $24.0 million compared to $23.7 million during the same prior year period. Net earnings were $15.7 million or $1.23 per diluted share, as compared to $15.6 million, or $1.23 per diluted share for the prior year period.

First quarter and year to date 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. The comparable fiscal 2011 periods included environmental remediation expense of $0.7 million, or $0.04 per diluted share on an after tax basis.

Outlook

Rick Parod, president and chief executive officer, commented, “Global irrigation demand drove improved results in our domestic and international businesses. Our operating margins improved year over year despite the significantly lower QMB sales. Irrigation order volumes remained strong throughout the quarter leading to increased backlog as we enter the seasonally stronger third quarter.”

Parod added, “Farm incomes and commodity prices remain relatively high by historical standards and have continued to drive positive farmer sentiment. Expanded food production and efficient water use remain positive drivers for irrigation equipment demand, globally. Infrastructure demand, including QMB projects, has proven to be challenging, due to funding issues and project delays. During the past few months, we have experienced numerous QMB project delays that have left us uncertain as to the timing and extent of projects in the second half of fiscal 2012.”

Second-Quarter Conference Call

Lindsay’s fiscal 2012 second 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 # 60279722. 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 February 29, 2012, Lindsay had approximately 12.7 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     Six months ended  
     February 29,     February 28,     February 29,     February 28,  

($ in thousands, except per share amounts)

   2012     2011     2012     2011  

Operating revenues

   $ 132,134      $ 120,168      $ 251,339      $ 209,334   

Cost of operating revenues

     95,640        86,159        184,597        151,102   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     36,494        34,009        66,742        58,232   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Selling expense

     6,868        6,911        13,812        13,929   

General and administrative expense

     8,434        7,265        17,374        14,583   

Engineering and research expense

     2,244        2,772        4,300        5,336   

Environmental remediation expense

     —          —          7,225        713   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     17,546        16,948        42,711        34,561   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     18,948        17,061        24,031        23,671   

Other income (expense):

        

Interest expense

     (130     (213     (273     (399

Interest income

     94        37        190        79   

Other income (expense), net

     515        116        (80     227   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before income taxes

     19,427        17,001        23,868        23,578   

Income tax provision

     6,653        5,676        8,173        7,967   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

   $ 12,774      $ 11,325      $ 15,695      $ 15,611   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic net earnings per share

   $ 1.01      $ 0.90      $ 1.24      $ 1.24   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net earnings per share

   $ 1.00      $ 0.89      $ 1.23      $ 1.23   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     12,703        12,548        12,692        12,525   

Diluted effect of stock equivalents

     118        137        100        139   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding assuming dilution

     12,821        12,685        12,792        12,664   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash dividends per share

   $ 0.090      $ 0.085      $ 0.180      $ 0.170   
  

 

 

   

 

 

   

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

 

     (Unaudited)     (Unaudited)        
     February 29,     February 28,     August 31,  

($ and shares in thousands, except par values)

   2012     2011     2011  

ASSETS

      

Current Assets:

      

Cash and cash equivalents

   $ 104,953      $ 78,448      $ 108,167   

Receivables, net of allowance

     77,536        75,096        79,006   

Inventories, net

     68,578        54,876        49,524   

Deferred income taxes

     8,336        5,457        8,598   

Other current assets

     14,193        10,035        12,398   
  

 

 

   

 

 

   

 

 

 

Total current assets

     273,596        223,912        257,693   

Property, plant and equipment, net

     57,236        58,141        58,465   

Other intangible assets, net

     26,839        27,807        28,639   

Goodwill, net

     30,443        28,528        30,943   

Other noncurrent assets

     5,486        4,869        5,404   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 393,600      $ 343,257      $ 381,144   
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current Liabilities:

      

Accounts payable

   $ 39,417      $ 38,261      $ 32,153   

Current portion of long-term debt

     4,286        4,286        4,286   

Other current liabilities

     33,428        27,049        42,880   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     77,131        69,596        79,319   

Pension benefits liabilities

     6,115        6,289        6,231   

Long-term debt

     2,143        6,428        4,285   

Deferred income taxes

     11,678        10,746        12,550   

Other noncurrent liabilities

     8,362        1,798        3,094   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     105,429        94,857        105,479   
  

 

 

   

 

 

   

 

 

 

Shareholders’ equity:

      

Preferred stock

     —          —          —     

Common stock

     18,409        18,257        18,374   

Capital in excess of stated value

     40,736        32,954        39,058   

Retained earnings

     316,141        283,751        302,732   

Less treasury stock

     (90,961     (90,961     (90,961

Accumulated other comprehensive income, net

     3,846        4,399        6,462   
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     288,171        248,400        275,665   
  

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 393,600      $ 343,257      $ 381,144   
  

 

 

   

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

($ in thousands)

   Six Months Ended  
     February 29,
2012
    February 28,
2011
 

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net earnings

   $ 15,695      $ 15,611   

Adjustments to reconcile net earnings to net cash provided by operating activities:

    

Depreciation and amortization

     6,235        5,880   

Provision for uncollectible accounts receivable

     129        188   

Deferred income taxes

     (1,299     (575

Share-based compensation expense

     1,829        1,586   

Other, net

     587        (373

Changes in assets and liabilities:

    

Receivables

     150        (10,137

Inventories

     (20,221     (8,003

Other current assets

     (1,798     (762

Accounts payable

     7,796        11,245   

Other current liabilities

     (8,670     (7,877

Current taxes payable

     (1,260     (1,525

Other noncurrent assets and liabilities

     5,692        (1,343
  

 

 

   

 

 

 

Net cash provided by operating activities

     4,865        3,915   
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchases of property, plant and equipment

     (4,723     (4,402

Proceeds from sale of property, plant and equipment

     107        53   

Acquisition of business, net of cash acquired

     —          (1,279

Proceeds (payment) for settlement of net investment hedge

     1,548        (734
  

 

 

   

 

 

 

Net cash used in investing activities

     (3,068     (6,362
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Issuance of common stock under share-based compensation plans

     276        809   

Common stock withheld from share-based compensation for payroll tax withholdings

     (577     (843

Principal payments on long-term debt

     (2,142     (2,143

Net borrowing on revolving line of credit

     —          389   

Excess tax benefits from share-based compensation

     273        877   

Dividends paid

     (2,286     (2,133
  

 

 

   

 

 

 

Net cash used in financing activities

     (4,456     (3,044
  

 

 

   

 

 

 

Effect of exchange rate changes on cash

     (555     521   
  

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (3,214     (4,970

Cash and cash equivalents, beginning of period

     108,167        83,418   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 104,953      $ 78,448