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8-K - FORM 8-K - LINDSAY CORPd511057d8k.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 2013 Second Quarter Results

OMAHA, Neb., March 27, 2013—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its second quarter ended February 28, 2013.

Second Quarter Results

Second quarter fiscal 2013 revenues were a record $175.5 million, increasing 33 percent from $132.1 million in the same prior year period. Net earnings were $19.4 million or $1.50 per diluted share compared with $12.8 million or $1.00 per diluted share in the prior year.

Total irrigation equipment revenues increased 39 percent to $162.6 million from $117.0 million in the prior fiscal year’s second quarter. Domestic irrigation revenues of $117.1 million increased 41 percent, while international irrigation revenues of $45.5 million increased 34 percent due to increased demand resulting from higher commodity prices and farm incomes along with drought conditions in the United States. Infrastructure revenues decreased 15 percent to $12.9 million.

Gross margin was 28.7 percent compared to 27.6 percent in the prior year’s second quarter. The increase is primarily due to an increase in irrigation gross margins of approximately 1 percentage point due to a strong pricing environment combined with increased productivity and cost leverage.

Operating expenses were $20.9 million compared to $17.5 million in the prior fiscal year. Current year expenses included higher personnel related expenses and increases in advertising and research and development expenses. Operating expenses were 11.9 percent of sales in the second quarter of fiscal 2013 compared with 13.3 percent of sales in the prior year period. Operating margins of 16.8 percent increased from 14.3 percent in the prior year period.

Cash and cash equivalents of $159.6 million were $54.6 million higher compared to the end of the second quarter last year, while debt decreased $4.3 million.

Backlog of unshipped orders at February 28, 2013 was $159.3 million compared with $87.3 million at February 29, 2012 and $85.1 million at November 30, 2012. Current year backlog includes strong domestic irrigation volume along with a $39.1 million contract in the Middle East consisting of irrigation machines and ancillary equipment that will be shipped and delivered primarily over the balance of fiscal 2013.

Six Month Results

Total revenues for the six months ended February 28, 2013 were $322.9 million, a 28 percent increase from $251.3 million in the same prior year period. Net earnings were $34.1 million or $2.65 per diluted share compared with $15.7 million or $1.23 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 36 percent to $296.9 million from $217.7 million during the first six months of the prior fiscal year. Domestic irrigation revenues of $213.6 million increased 49 percent, while international irrigation revenues of $83.3 million increased 12 percent due to sales increases in South America and Russia. Infrastructure revenues decreased 23 percent to $26.0 million.

Outlook

Rick Parod, president and chief executive officer, commented, “Record backlog at the end of the quarter resulted from continued robust irrigation order volumes in the second quarter along with the award of a large irrigation project in the Middle East. While contracts of this type generally generate below average gross margins, the award demonstrates the success that we are having in developing Lindsay Corporation’s position around the world.”

Parod added, “Positive farmer sentiment along with historically high farm incomes and commodity prices provide a solid backdrop for strong irrigation sales. However, expectations of record crop planting and improved yields are leading to projections of lower commodity prices, which could lead to reduced demand over the balance of 2013 and into 2014. The environment for infrastructure sales remains difficult, so we are focused on operating efficiencies and expense controls to position the segment for improved profitability as the market strengthens.”

Parod continued, “Overall the long-term drivers for the company of population growth, expanded food production, efficient water use, and improved transportation infrastructure remain positive.”

Second-Quarter Conference Call

Lindsay’s fiscal 2013 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) 321-8161 domestically, or (706) 758-0065 internationally, and referring to conference ID # 21726133. 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 third 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, Lindsay Transportation Solutions and Snoline S.P.A. At February 28, 2013 Lindsay had approximately 12.9 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.

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 28,     February 29,     February 28,     February 29,  

($ and shares in thousands, except per share amounts)

   2013     2012     2013     2012  

Operating revenues

   $ 175,539      $ 132,134      $ 322,909      $ 251,339   

Cost of operating revenues

     125,175        95,640        229,688        184,597   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     50,364        36,494        93,221        66,742   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Selling expense

     8,000        6,868        15,321        13,812   

General and administrative expense

     10,155        8,434        20,273        17,374   

Engineering and research expense

     2,763        2,244        5,917        4,300   

Environmental remediation expense

     —          —          —          7,225   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     20,918        17,546        41,511        42,711   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     29,446        18,948        51,710        24,031   

Other income (expense):

        

Interest expense

     (83     (130     (226     (273

Interest income

     129        94        267        190   

Other income (expense), net

     (4     515        120        (80
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before income taxes

     29,488        19,427        51,871        23,868   

Income tax expense

     10,137        6,653        17,792        8,173   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

   $ 19,351      $ 12,774      $ 34,079      $ 15,695   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $ 1.51      $ 1.01      $ 2.66      $ 1.24   

Diluted

   $ 1.50      $ 1.00      $ 2.65      $ 1.23   

Shares used in computing earnings per share:

        

Basic

     12,842        12,703        12,799        12,692   

Diluted

     12,882        12,821        12,867        12,792   

Cash dividends declared per share

   $ 0.115      $ 0.090      $ 0.230      $ 0.180   


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

     Three months ended      Six months ended  
     February 28,     February 29,      February 28,     February 29,  

($ in thousands)

   2013     2012      2013     2012  

Net earnings

   $ 19,351      $ 12,774       $ 34,079      $ 15,695   
  

 

 

   

 

 

    

 

 

   

 

 

 

Other comprehensive income (loss):

         

Defined benefit pension plan adjustment, net of tax

     33        25         66        51   

Unrealized (loss) gain on cash flow hedges, net of tax

     (35     48         (9     120   

Foreign currency translation adjustment, net of hedging activities and tax

     1,148        1,344         1,107        (2,787
  

 

 

   

 

 

    

 

 

   

 

 

 

Total other comprehensive income (loss), net of tax expense (benefit) of $275, $216, ($118) and $355

     1,146        1,417         1,164        (2,616
  

 

 

   

 

 

    

 

 

   

 

 

 

Total comprehensive income

   $ 20,497      $ 14,191       $ 35,243      $ 13,079   
  

 

 

   

 

 

    

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

     February 28,     February 29,     August 31,  

($ and shares in thousands, except par values)

   2013     2012     2012  

ASSETS

      

Current Assets:

      

Cash and cash equivalents

   $ 159,583      $ 104,953      $ 143,444   

Receivables, net of allowance of $1,915, $2,002 and $1,717

     105,399        77,536        82,565   

Inventories, net

     78,071        68,578        52,873   

Deferred income taxes

     9,110        8,336        9,505   

Other current assets

     15,020        14,193        10,478   
  

 

 

   

 

 

   

 

 

 

Total current assets

     367,183        273,596        298,865   
  

 

 

   

 

 

   

 

 

 

Property, Plant and Equipment:

      

Cost

     141,973        134,413        136,695   

Less accumulated depreciation

     (85,104     (77,177     (80,515
  

 

 

   

 

 

   

 

 

 

Property, plant and equipment, net

     56,869        57,236        56,180   
  

 

 

   

 

 

   

 

 

 

Intangibles, net

     23,729        26,839        25,070   

Goodwill

     30,211        30,443        29,961   

Other noncurrent assets

     4,490        5,486        5,455   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 482,482      $ 393,600      $ 415,531   
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current Liabilities:

      

Accounts payable

   $ 63,651      $ 39,417      $ 31,372   

Current portion of long-term debt

     2,143        4,286        4,285   

Other current liabilities

     45,724        33,428        44,781   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     111,518        77,131        80,438   
  

 

 

   

 

 

   

 

 

 

Pension benefits liabilities

     6,676        6,115        6,821   

Long-term debt

     —          2,143        —     

Deferred income taxes

     9,716        11,678        9,984   

Other noncurrent liabilities

     7,415        8,362        7,450   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     135,325        105,429        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; 18,553 issued

     18,553        18,409        18,421   

Capital in excess of stated value

     47,036        40,736        43,140   

Retained earnings

     372,242        316,141        341,115   

Less treasury stock (at cost, 5,698 shares)

     (90,961     (90,961     (90,961

Accumulated other comprehensive income (loss), net

     287        3,846        (877
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     347,157        288,171        310,838   
  

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 482,482      $ 393,600      $ 415,531   
  

 

 

   

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Six months ended  
     February 28,     February 29,  

($ in thousands)

   2013     2012  

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net earnings

   $ 34,079     $ 15,695  

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

    

Depreciation and amortization

     6,240       6,235  

Provision for uncollectible accounts receivable

     530       129  

Deferred income taxes

     (2,104     (1,299

Share-based compensation expense

     2,351       1,829  

Other, net

     144       587  

Changes in assets and liabilities:

    

Receivables

     (22,880     150  

Inventories

     (24,827     (20,221

Other current assets

     (4,222     (1,798

Accounts payable

     32,066       7,796  

Other current liabilities

     5,331       (8,670

Current taxes payable

     (789     (1,260

Other noncurrent assets and liabilities

     273       5,692  
  

 

 

   

 

 

 

Net cash provided by operating activities

     26,192       4,865  
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchases of property, plant and equipment

     (5,342     (4,723

Proceeds from sale of property, plant and equipment

     14       107  

(Payment) proceeds for settlement of net investment hedge

     (1,919     1,548  
  

 

 

   

 

 

 

Net cash used in investing activities

     (7,247     (3,068
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Proceeds from exercise of stock options

     1,619       276  

Common stock withheld for payroll tax withholdings

     (2,441     (577

Principal payments on long-term debt

     (2,142     (2,142

Excess tax benefits from share-based compensation

     2,629       273  

Dividends paid

     (2,952     (2,286
  

 

 

   

 

 

 

Net cash used in financing activities

     (3,287     (4,456
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     481       (555
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     16,139       (3,214

Cash and cash equivalents, beginning of period

     143,444       108,167  
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 159,583     $ 104,953