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
Lindsay Corporation Reports Fiscal 2013 First Quarter Results
Press spacebar to pause and continue. Press esc to stop.