- Third quarter consolidated revenues increase 32 percent to $214.3 million with EPS of $2.28
- Irrigation revenues increase 35 percent with an increase in operating income of 65 percent
- Infrastructure revenues increase 17 percent as road construction activity levels improve
Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its third quarter of fiscal 2022, which ended on May 31, 2022.
Third Quarter Summary
Revenues for the third quarter of fiscal 2022 were $214.3 million, an increase of $52.3 million, or 32 percent, compared to revenues of $161.9 million in the prior year third quarter. Net earnings for the quarter were $25.1 million, or $2.28 per diluted share, compared with net earnings of $17.8 million, or $1.60 per diluted share, for the prior year third quarter.
“Global demand for irrigation equipment remained strong in our third quarter, particularly in our international markets. While inflationary pressures continue to persist, we were pleased to see improved price realization across the business,” said Randy Wood, President and Chief Executive Officer. “In the infrastructure business, we are starting to see an increase in road construction activity in the U.S., and we also began delivery of one of the Road Zipper System projects we have been expecting in the second half of our year.”
Third Quarter Segment Results
Irrigation segment revenues for the third quarter of fiscal 2022 were $188.7 million, an increase of $48.5 million, or 35 percent, compared to $140.2 million in the prior year third quarter. North America irrigation revenues of $96.2 million increased $8.8 million, or 10 percent, compared to the prior year third quarter. The increase in North America irrigation revenues resulted primarily from the impact of higher average selling prices, which was partially offset by lower unit sales volume. International irrigation revenues of $92.5 million increased $39.7 million, or 75 percent, compared to the prior year third quarter. The increase resulted from a combination of higher average selling prices and higher unit sales volumes in most international markets. Revenues in Brazil more than doubled compared to the prior year third quarter. Also contributing were favorable effects of foreign currency translation of approximately $2.5 million compared to the prior year third quarter.
Irrigation segment operating income for the third quarter of fiscal 2022 was $39.6 million, an increase of $15.6 million, or 65 percent, compared to the prior year third quarter. Operating margin was 21.0 percent of sales, compared to 17.1 percent of sales in the prior year third quarter. The increase in operating margin resulted from improved price realization and additional volume leverage, which more than offset the impact of inflationary cost increases.
Infrastructure segment revenues for the third quarter of fiscal 2022 were $25.6 million, an increase of $3.8 million, or 17 percent, compared to $21.7 million in the prior year third quarter. The increase resulted from higher sales of road safety products and Road Zipper System project sales, which were partially offset by lower Road Zipper System lease revenue.
Infrastructure segment operating income for the third quarter of fiscal 2022 was $3.8 million, which was comparable to the prior year third quarter. Operating margin was 14.8 percent of sales, compared to 17.3 percent of sales in the prior year third quarter. Current year results reflect a less favorable margin mix of revenues compared to the prior year third quarter and under absorbed fixed overhead costs.
The backlog of unfilled orders at May 31, 2022 was $98.3 million compared with $120.8 million at May 31, 2021. The backlog in the prior year included an irrigation project order of $36.0 million. Excluding the impact of this order, the irrigation backlog is higher compared to the prior year while the infrastructure backlog is lower.
Outlook
“Global agriculture market fundamentals remain positive; however, grower sentiment in the U.S. is being tempered somewhat by inflationary pressures they are experiencing with their input costs and operational expenses. We continue to see increased activity levels in international project markets as concerns over food security and global grain supplies have been heightened by the ongoing conflict between Russia and Ukraine,” said Mr. Wood. “In the infrastructure business, we expect to complete delivery of the Road Zipper System project that began in the third quarter, and we also expect to begin delivery of another significant project in the fourth quarter. We remain optimistic regarding growth opportunities for this business based on the quality of our sales funnel and increasing commercial activity.”
Third Quarter Conference Call
Lindsay’s fiscal 2022 third quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (833) 535-2202 in the U.S., or (412) 902-6745 internationally, and requesting the Lindsay Corporation call. 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 next quarterly earnings release. 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 Corporation (NYSE: LNN) is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. Established in 1955, the company has been at the forefront of research and development of innovative solutions to meet the food, fuel, fiber and transportation needs of the world’s rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic® center pivot and lateral move agricultural irrigation systems, FieldNET® remote irrigation management and scheduling technology, and industrial IoT solutions. Also a global leader in the transportation industry, Lindsay Transportation Solutions manufactures equipment to improve road safety and keep traffic moving on the world’s roads, bridges and tunnels, through the Barrier Systems®, Road Zipper® and Snoline™ brands. For more information about Lindsay Corporation, visit 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 and planned financing 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 |
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|||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
|
|||||||||||||||||||
(Unaudited) |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
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|
||||||||
|
|
Three months ended |
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Nine months ended |
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||||||||||||||
(in thousands, except per share amounts) |
|
|
May 31,
|
|
|
|
May 31,
|
|
|
|
May 31,
|
|
|
|
May 31,
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating revenues |
|
$ |
|
214,259 |
|
|
$ |
|
161,936 |
|
|
$ |
|
580,547 |
|
|
$ |
|
413,998 |
|
Cost of operating revenues |
|
|
|
152,579 |
|
|
|
|
117,880 |
|
|
|
|
438,486 |
|
|
|
|
297,360 |
|
Gross profit |
|
|
|
61,680 |
|
|
|
|
44,056 |
|
|
|
|
142,061 |
|
|
|
|
116,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling expense |
|
|
|
8,148 |
|
|
|
|
7,570 |
|
|
|
|
24,070 |
|
|
|
|
22,680 |
|
General and administrative expense |
|
|
|
14,647 |
|
|
|
|
12,043 |
|
|
|
|
40,548 |
|
|
|
|
39,770 |
|
Engineering and research expense |
|
|
|
3,723 |
|
|
|
|
3,102 |
|
|
|
|
10,582 |
|
|
|
|
9,504 |
|
Total operating expenses |
|
|
|
26,518 |
|
|
|
|
22,715 |
|
|
|
|
75,200 |
|
|
|
|
71,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
|
35,162 |
|
|
|
|
21,341 |
|
|
|
|
66,861 |
|
|
|
|
44,684 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
|
(1,006 |
) |
|
|
|
(1,178 |
) |
|
|
|
(3,345 |
) |
|
|
|
(3,584 |
) |
Interest income |
|
|
|
118 |
|
|
|
|
227 |
|
|
|
|
456 |
|
|
|
|
798 |
|
Other income, net |
|
|
|
1,282 |
|
|
|
|
764 |
|
|
|
|
264 |
|
|
|
|
699 |
|
Total other income (expense) |
|
|
|
394 |
|
|
|
|
(187 |
) |
|
|
|
(2,625 |
) |
|
|
|
(2,087 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings before income taxes |
|
|
|
35,556 |
|
|
|
|
21,154 |
|
|
|
|
64,236 |
|
|
|
|
42,597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
|
|
10,483 |
|
|
|
|
3,357 |
|
|
|
|
16,696 |
|
|
|
|
5,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings |
|
$ |
|
25,073 |
|
|
$ |
|
17,797 |
|
|
$ |
|
47,540 |
|
|
$ |
|
36,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
|
2.28 |
|
|
$ |
|
1.63 |
|
|
$ |
|
4.34 |
|
|
$ |
|
3.38 |
|
Diluted |
|
$ |
|
2.28 |
|
|
$ |
|
1.61 |
|
|
$ |
|
4.31 |
|
|
$ |
|
3.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shares used in computing earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
|
10,978 |
|
|
|
|
10,907 |
|
|
|
|
10,960 |
|
|
|
|
10,879 |
|
Diluted |
|
|
|
11,021 |
|
|
|
|
11,033 |
|
|
|
|
11,020 |
|
|
|
|
10,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash dividends declared per share |
|
$ |
|
0.33 |
|
|
$ |
|
0.33 |
|
|
$ |
|
0.99 |
|
|
$ |
|
0.97 |
|
LINDSAY CORPORATION AND SUBSIDIARIES |
|
|||||||||||||||||||
SUMMARY OPERATING RESULTS |
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|||||||||||||||||||
(Unaudited) |
|
|||||||||||||||||||
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
|
|
Nine months ended |
|
|||||||||||||
(in thousands) |
|
|
May 31,
|
|
|
|
May 31,
|
|
|
|
May 31,
|
|
|
|
May 31,
|
|
||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Irrigation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America |
|
$ |
|
96,153 |
|
|
$ |
|
87,364 |
|
|
$ |
|
275,601 |
|
|
$ |
|
220,332 |
|
International |
|
|
|
92,540 |
|
|
|
|
52,811 |
|
|
|
|
239,759 |
|
|
|
|
125,772 |
|
Irrigation segment |
|
|
|
188,693 |
|
|
|
|
140,175 |
|
|
|
515,360 |
|
|
|
346,104 |
|
||
Infrastructure segment |
|
|
|
25,566 |
|
|
|
|
21,761 |
|
|
|
|
65,187 |
|
|
|
|
67,894 |
|
Total operating revenues |
|
$ |
|
214,259 |
|
|
$ |
|
161,936 |
|
|
$ |
|
580,547 |
|
|
$ |
|
413,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Irrigation segment |
|
$ |
|
39,567 |
|
|
$ |
|
23,925 |
|
|
$ |
|
81,513 |
|
|
$ |
|
52,603 |
|
Infrastructure segment |
|
|
|
3,779 |
|
|
|
|
3,767 |
|
|
|
|
6,869 |
|
|
|
|
14,364 |
|
Corporate |
|
|
|
(8,184 |
) |
|
|
|
(6,351 |
) |
|
|
|
(21,521 |
) |
|
|
|
(22,283 |
) |
Total operating income |
|
$ |
|
35,162 |
|
|
$ |
|
21,341 |
|
|
$ |
|
66,861 |
|
|
$ |
|
44,684 |
|
The Company manages its business activities in two reportable segments as follows:
Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial IoT solutions.
Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment.
LINDSAY CORPORATION AND SUBSIDIARIES |
|
||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
||||||||||||||
(Unaudited) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
(in thousands) |
|
May 31,
|
|
|
May 31,
|
|
|
August 31,
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
|
81,757 |
|
|
$ |
|
120,801 |
|
|
$ |
|
127,107 |
|
Marketable securities |
|
|
|
13,930 |
|
|
|
|
19,663 |
|
|
|
|
19,604 |
|
Receivables, net |
|
|
|
155,518 |
|
|
|
|
107,713 |
|
|
|
|
93,609 |
|
Inventories, net |
|
|
|
195,566 |
|
|
|
|
136,601 |
|
|
|
|
145,244 |
|
Other current assets, net |
|
|
|
28,663 |
|
|
|
|
32,947 |
|
|
|
|
30,539 |
|
Total current assets |
|
|
|
475,434 |
|
|
|
|
417,725 |
|
|
|
|
416,103 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Property, plant, and equipment, net |
|
|
|
94,441 |
|
|
|
|
92,517 |
|
|
|
|
91,997 |
|
Intangibles, net |
|
|
|
18,769 |
|
|
|
|
21,893 |
|
|
|
|
20,367 |
|
Goodwill |
|
|
|
67,476 |
|
|
|
|
68,134 |
|
|
|
|
67,968 |
|
Operating lease right-of-use assets |
|
|
|
20,263 |
|
|
|
|
19,360 |
|
|
|
|
18,281 |
|
Deferred income tax assets |
|
|
|
7,857 |
|
|
|
|
10,247 |
|
|
|
|
8,113 |
|
Other noncurrent assets, net |
|
|
|
27,676 |
|
|
|
|
12,341 |
|
|
|
|
14,356 |
|
Total assets |
|
$ |
|
711,916 |
|
|
$ |
|
642,217 |
|
|
$ |
|
637,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Accounts payable |
|
$ |
|
72,350 |
|
|
$ |
|
49,351 |
|
|
$ |
|
45,209 |
|
Current portion of long-term debt |
|
|
|
221 |
|
|
|
|
216 |
|
|
|
|
217 |
|
Other current liabilities |
|
|
|
101,243 |
|
|
|
|
94,589 |
|
|
|
|
92,814 |
|
Total current liabilities |
|
|
|
173,814 |
|
|
|
|
144,156 |
|
|
|
|
138,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Pension benefits liabilities |
|
|
|
5,474 |
|
|
|
|
6,086 |
|
|
|
|
5,754 |
|
Long-term debt |
|
|
|
115,384 |
|
|
|
|
115,557 |
|
|
|
|
115,514 |
|
Operating lease liabilities |
|
|
|
20,688 |
|
|
|
|
19,369 |
|
|
|
|
18,301 |
|
Deferred income tax liabilities |
|
|
|
730 |
|
|
|
|
881 |
|
|
|
|
832 |
|
Other noncurrent liabilities |
|
|
|
15,056 |
|
|
|
|
19,995 |
|
|
|
|
20,099 |
|
Total liabilities |
|
|
|
331,146 |
|
|
|
|
306,044 |
|
|
|
|
298,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Preferred stock |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Common stock |
|
|
|
19,063 |
|
|
|
|
18,991 |
|
|
|
|
18,991 |
|
Capital in excess of stated value |
|
|
|
92,516 |
|
|
|
|
85,257 |
|
|
|
|
86,495 |
|
Retained earnings |
|
|
|
564,805 |
|
|
|
|
525,926 |
|
|
|
|
528,130 |
|
Less treasury stock - at cost |
|
|
|
(277,238 |
) |
|
|
|
(277,238 |
) |
|
|
|
(277,238 |
) |
Accumulated other comprehensive loss, net |
|
|
|
(18,376 |
) |
|
|
|
(16,763 |
) |
|
|
|
(17,933 |
) |
Total shareholders' equity |
|
|
|
380,770 |
|
|
|
|
336,173 |
|
|
|
|
338,445 |
|
Total liabilities and shareholders' equity |
|
$ |
|
711,916 |
|
|
$ |
|
642,217 |
|
|
$ |
|
637,185 |
|
LINDSAY CORPORATION AND SUBSIDIARIES |
|
|||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
|||||||||
(Unaudited) |
|
|||||||||
|
|
|
|
|
|
|
|
|
||
|
|
Nine months ended |
|
|||||||
(in thousands) |
|
|
May 31, 2022 |
|
|
|
May 31, 2021 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
||
Net earnings |
|
$ |
|
47,540 |
|
|
$ |
|
36,768 |
|
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
14,930 |
|
|
|
|
14,688 |
|
Provision for uncollectible accounts receivable |
|
|
|
734 |
|
|
|
|
304 |
|
Deferred income taxes |
|
|
|
514 |
|
|
|
|
205 |
|
Share-based compensation expense |
|
|
|
4,061 |
|
|
|
|
5,021 |
|
Unrealized foreign currency transaction gain |
|
|
|
(754 |
) |
|
|
|
(1,934 |
) |
Other, net |
|
|
|
645 |
|
|
|
|
(2,123 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
||
Receivables |
|
|
|
(63,365 |
) |
|
|
|
(22,934 |
) |
Inventories |
|
|
|
(49,209 |
) |
|
|
|
(28,612 |
) |
Other current assets |
|
|
|
1,669 |
|
|
|
|
(14,025 |
) |
Accounts payable |
|
|
|
26,319 |
|
|
|
|
20,828 |
|
Other current liabilities |
|
|
|
822 |
|
|
|
|
20,149 |
|
Other noncurrent assets and liabilities |
|
|
|
(8,840 |
) |
|
|
|
2,325 |
|
Net cash (used in) provided by operating activities |
|
|
|
(24,934 |
) |
|
|
|
30,660 |
|
|
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
||
Purchases of property, plant, and equipment |
|
|
|
(12,222 |
) |
|
|
|
(22,532 |
) |
Purchases of marketable securities |
|
|
|
(18,468 |
) |
|
|
|
(13,067 |
) |
Proceeds from maturities of marketable securities |
|
|
|
23,592 |
|
|
|
|
12,592 |
|
Other investing activities, net |
|
|
|
(2,952 |
) |
|
|
|
(1,960 |
) |
Net cash used in investing activities |
|
|
|
(10,050 |
) |
|
|
|
(24,967 |
) |
|
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
||
Proceeds from exercise of stock options |
|
|
|
2,894 |
|
|
|
|
3,892 |
|
Common stock withheld for payroll tax obligations |
|
|
|
(1,181 |
) |
|
|
|
(1,269 |
) |
Proceeds from employee stock purchase plan |
|
|
|
319 |
|
|
|
|
— |
|
Principal payments on long-term debt |
|
|
|
(163 |
) |
|
|
|
(141 |
) |
Dividends paid |
|
|
|
(10,865 |
) |
|
|
|
(10,566 |
) |
Net cash used in financing activities |
|
|
|
(8,996 |
) |
|
|
|
(8,084 |
) |
|
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
|
|
(1,370 |
) |
|
|
|
1,789 |
|
Net change in cash and cash equivalents |
|
|
|
(45,350 |
) |
|
|
|
(602 |
) |
Cash and cash equivalents, beginning of period |
|
|
|
127,107 |
|
|
|
|
121,403 |
|
Cash and cash equivalents, end of period |
|
$ |
|
81,757 |
|
|
$ |
|
120,801 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220630005269/en/
Contacts
LINDSAY CORPORATION:
Brian Ketcham
Senior Vice President & Chief Financial Officer
402-827-6579
THREE PART ADVISORS:
Jeff Elliott 972-423-7070
Gary Guyton 214-442-0016
