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Lindsay Corporation Reports Fiscal 2013 First Quarter Results

  Lindsay Corporation Reports Fiscal 2013 First Quarter Results

Business Wire

OMAHA, Neb. -- January 8, 2013

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       2012           2011
amounts)
                                                                  
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       33             26
tax
Unrealized gain on cash flow hedges, net of tax       26             72
Foreign currency translation adjustment, net of      (41     )     (4,131  )
hedging activities, net of tax
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   2012           2011           2012
par values)
                                                                   
ASSETS
Current Assets:
Cash and cash equivalents            $  152,173     $  108,731     $ 143,444
Receivables, net of allowance of        88,893         76,671        82,565
$1,645, $2,171 and $1,717
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        18,531         18,397        18,421
issued
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,           (90,961 )      (90,961 )     (90,961 )
5,698 shares)
Accumulated other comprehensive        (859    )     2,429       (877    )
(loss) income, net
Total shareholders' equity             326,073      273,821     310,838 
Total liabilities and                $  442,878    $  384,082    $ 415,531 
shareholders' equity
                                                                             
                                                                             

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             (1,093  )     476     
investment hedge
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                 (2,441  )      (579    )
withholdings
Principal payments on long-term debt                  (1,072  )      (1,071  )
Excess tax benefits from share-based                  2,185          135
compensation
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     302          (829    )
equivalents
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 

Contact:

Lindsay Corporation
Jim Raabe, 402-827-6579
Vice President & Chief Financial Officer
or
Halliburton Investor Relations
Hala Elsherbini or Geralyn DeBusk, 972-458-8000