UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
June 25, 2015
LINDSAY
CORPORATION
(Exact name of registrant as specified in its charter)
|
|
|
|
|
Delaware |
|
1-13419 |
|
47-0554096 |
(State of Incorporation) |
|
(Commission
File Number) |
|
(IRS Employer
Identification Number) |
|
|
|
2222 North 111th Street
Omaha, Nebraska |
|
68164 |
(Address of principal executive offices) |
|
(Zip Code) |
(402) 829-6800
(Registrants telephone number, including area code)
Not applicable
(Former
name or former address, if changed since last report)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 |
Results of Operations and Financial Condition. |
On June 25, 2015, Lindsay
Corporation (the Company) issued a press release announcing the Companys results of operations for its third fiscal quarter ended May 31, 2015. A copy of the press release is furnished herewith as Exhibit 99.1.
Item 9.01. |
Financial Statements and Exhibits |
99.1 Press Release, dated June 25, 2015, issued
by the Company.
The information contained in this Current Report under Item 2.02, including the exhibit referenced in Item 9.01
below, is being furnished pursuant to Item 2.02. Results of Operations and Financial Condition of Form 8-K and, as such, shall not be deemed to be filed for purposes of Section 18 of the Securities and
Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to
the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
|
|
|
|
|
|
|
Dated: June 25, 2015 |
|
|
|
LINDSAY CORPORATION |
|
|
|
|
|
|
|
|
By: |
|
/s/ Jim Raabe |
|
|
|
|
|
|
Vice President and Chief Financial Officer |
Exhibit 99.1
|
|
|
|
|
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 2015 Third Quarter Results
OMAHA, Neb., June 25, 2015Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced
results for its third quarter ended May 31, 2015.
Third Quarter Results
Third quarter fiscal 2015 revenues were $160.7 million versus $169.9 million of revenues in the same prior year period. Net earnings were $12.9 million or
$1.10 per diluted share compared with $16.5 million or $1.28 per diluted share in the prior year.
Irrigation equipment revenues totaled $131.3 million
including $6.3 million of revenues from the recently acquired Elecsys Corporation, a 12 percent decrease from $149.0 million in the prior fiscal years third quarter. U.S. irrigation revenues of $86.7 million decreased 2 percent primarily as a
result of the reduction in commodity prices and lower storm damage sales, partially offset by Elecsys revenue. In the international irrigation markets revenues for the third quarter were $44.6 million, decreasing 27 percent over the same quarter
last year, with 10 percent revenue decline due to currency exchange. Sales declined in most markets but most significantly in Europe, China and Russia/Ukraine. Infrastructure revenues increased 41 percent to $29.4 million primarily due to increases
in road safety product sales and Road Zipper System sales and leases.
Gross margin was 28.9 percent of sales compared to 28.4 percent of sales in the
prior years third quarter. Gross margin in irrigation decreased by approximately 1 percentage point and infrastructure gross margin increased by approximately 10 percentage points. The decrease in irrigation gross margins is primarily a result
of pricing pressure and cost deleverage from lower sales, partially offset by lower material costs and reductions in warranty expenses. The increase in infrastructure gross margin was primarily due to sales mix and cost leverage on higher sales.
Operating expenses increased $1.9 million to $24.9 million compared to the third quarter of the prior fiscal year. The increase includes $2.4 million of
Elecsys Corporation operating expenses and $0.8 million in incremental health benefit expenses partially offset by decreases in discretionary expenses. Operating expenses were 15.5 percent of sales in the third quarter of fiscal 2015 compared with
13.6 percent of sales in the prior year period. Operating margins were 13.4 percent in the third quarter, versus 14.8 percent in the prior year period.
Cash and cash equivalents of $154.0 million were $28.0 million lower compared to the prior year third quarter. The Company repurchased 371,886 shares for
$29.1 million during the third quarter. Since the announcement of its capital allocation plan in January 2014, the Company has repurchased a total of 1.5 million shares for $119.5 million, with $30.5 million remaining authorized as of
May 31, 2015 for additional repurchases.
Backlog of unshipped orders at May 31, 2015 was $53.2 million compared with $73.6 million at
May 31, 2014 and $74.3 million at February 28, 2015. The backlog at May 31, 2014 included $12.7 million for the Golden Gate Bridge project, which was completed in the second quarter of fiscal 2015. The current period includes $12.3
million of backlog from Elecsys Corporation.
Nine Month Results
Total revenues for the nine months ended May 31, 2015 were $436.6 million versus $470.4 million in the same prior year period. Foreign currency
translation as compared to the prior year reduced year to date revenues by 3 percent. Net earnings were $29.5 million or $2.46 per diluted share compared with $40.2 million or $3.11 per diluted share in the prior year.
The current year includes $1.5 million of estimated environmental expenses and $1.8 million of acquisition and integration expenses. These expenses reduced
earnings by $0.18 per diluted share on an after tax basis. Excluding these expenses, the addition of Elecsys, and higher health care claims, SG&A expenses year to date have been reduced from 2014 levels by $2.6 million, with additional savings
anticipated in the fourth quarter. In addition, headcount in our Lindsay manufacturing facility has been reduced by 25 percent from the same time last year.
Total irrigation equipment revenues decreased 14 percent to $354.3 million from $414.1 million during the first nine months of the prior fiscal year. U.S.
irrigation revenues of $219.1 million decreased 16 percent, while international irrigation revenues of $135.2 million decreased 12 percent. Infrastructure revenues increased 46 percent to $82.3 million.
Outlook
Rick Parod, president and chief executive
officer, commented, The U.S. irrigation market continues to be impacted by lower commodity prices and farm incomes, while international irrigation markets have also been affected by changing currency rates and global commodity price
reductions. The infrastructure segment once again delivered very positive results in the quarter, reflecting increased market penetration and share gains.
Parod continued, While the longer term drivers to our markets remain positive, we do not see any significant indicators of near term improvements from
the current cyclical downturn in agriculture. We will continue to seek opportunities to improve our cost structure, while at the same time investing in product development and expansion of our global sales capabilities.
Third-Quarter Conference Call
Lindsays fiscal 2015
third quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (888) 307-0228 in the U.S., or (706) 758-0065 internationally, and referring to conference
ID # 64804585. Additionally, the conference call will be simulcast live on the Internet, and can be accessed via the investor relations section of the Companys 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 managements formal presentation, which will also be accessible via the Companys 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 under the Lindsay
Transportation Solutions trade name. At May 31, 2015 Lindsay had approximately 11.5 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.
For more information regarding Lindsay Corporation, see the Companys 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 managements 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Nine months ended |
|
($ and shares in thousands, except per share amounts) |
|
May 31, |
|
|
May 31, |
|
|
May 31, |
|
|
May 31, |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
|
|
|
|
|
Operating revenues |
|
$ |
160,707 |
|
|
$ |
169,936 |
|
|
$ |
436,641 |
|
|
$ |
470,411 |
|
Cost of operating revenues |
|
|
114,321 |
|
|
|
121,687 |
|
|
|
313,785 |
|
|
|
339,339 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
46,386 |
|
|
|
48,249 |
|
|
|
122,856 |
|
|
|
131,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expense |
|
|
10,682 |
|
|
|
9,954 |
|
|
|
30,330 |
|
|
|
29,244 |
|
General and administrative expense |
|
|
10,719 |
|
|
|
10,002 |
|
|
|
35,270 |
|
|
|
31,099 |
|
Engineering and research expense |
|
|
3,497 |
|
|
|
3,071 |
|
|
|
9,330 |
|
|
|
8,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
24,898 |
|
|
|
23,027 |
|
|
|
74,930 |
|
|
|
68,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
21,488 |
|
|
|
25,222 |
|
|
|
47,926 |
|
|
|
62,127 |
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(1,144 |
) |
|
|
(45 |
) |
|
|
(1,424 |
) |
|
|
(140 |
) |
Interest income |
|
|
134 |
|
|
|
295 |
|
|
|
468 |
|
|
|
587 |
|
Other expense, net |
|
|
(55 |
) |
|
|
28 |
|
|
|
(748 |
) |
|
|
(468 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes |
|
|
20,423 |
|
|
|
25,500 |
|
|
|
46,222 |
|
|
|
62,106 |
|
|
|
|
|
|
Income tax expense |
|
|
7,496 |
|
|
|
9,001 |
|
|
|
16,732 |
|
|
|
21,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
12,927 |
|
|
$ |
16,499 |
|
|
$ |
29,490 |
|
|
$ |
40,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.11 |
|
|
$ |
1.28 |
|
|
$ |
2.46 |
|
|
$ |
3.12 |
|
Diluted |
|
$ |
1.10 |
|
|
$ |
1.28 |
|
|
$ |
2.46 |
|
|
$ |
3.11 |
|
|
|
|
|
|
Shares used in computing earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
11,690 |
|
|
|
12,843 |
|
|
|
11,965 |
|
|
|
12,881 |
|
Diluted |
|
|
11,720 |
|
|
|
12,889 |
|
|
|
12,000 |
|
|
|
12,927 |
|
|
|
|
|
|
Cash dividends declared per share |
|
$ |
0.270 |
|
|
$ |
0.260 |
|
|
$ |
0.810 |
|
|
$ |
0.650 |
|
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31, |
|
|
May 31, |
|
|
August 31, |
|
($ and shares in thousands, except par values) |
|
2015 |
|
|
2014 |
|
|
2014 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
154,018 |
|
|
$ |
182,051 |
|
|
$ |
171,842 |
|
Receivables, net |
|
|
93,399 |
|
|
|
103,513 |
|
|
|
94,135 |
|
Inventories, net |
|
|
79,123 |
|
|
|
79,010 |
|
|
|
71,696 |
|
Deferred income taxes |
|
|
16,922 |
|
|
|
14,748 |
|
|
|
17,714 |
|
Other current assets |
|
|
17,641 |
|
|
|
19,992 |
|
|
|
18,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
361,103 |
|
|
|
399,314 |
|
|
|
374,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
76,854 |
|
|
|
65,029 |
|
|
|
72,457 |
|
Intangibles, net |
|
|
52,103 |
|
|
|
33,060 |
|
|
|
31,980 |
|
Goodwill |
|
|
75,124 |
|
|
|
37,211 |
|
|
|
37,021 |
|
Other noncurrent assets, net |
|
|
12,710 |
|
|
|
3,957 |
|
|
|
11,035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
577,894 |
|
|
$ |
538,571 |
|
|
$ |
526,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
46,560 |
|
|
$ |
47,352 |
|
|
$ |
42,424 |
|
Current portion of long-term debt |
|
|
182 |
|
|
|
|
|
|
|
|
|
Other current liabilities |
|
|
64,343 |
|
|
|
65,173 |
|
|
|
73,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
111,085 |
|
|
|
112,525 |
|
|
|
116,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension benefits liabilities |
|
|
6,389 |
|
|
|
6,141 |
|
|
|
6,600 |
|
Long-term debt |
|
|
117,222 |
|
|
|
|
|
|
|
|
|
Deferred income taxes |
|
|
18,685 |
|
|
|
13,999 |
|
|
|
12,992 |
|
Other noncurrent liabilities |
|
|
9,818 |
|
|
|
7,869 |
|
|
|
7,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
263,199 |
|
|
|
140,534 |
|
|
|
143,904 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
18,678 |
|
|
|
18,636 |
|
|
|
18,636 |
|
Capital in excess of stated value |
|
|
54,268 |
|
|
|
51,896 |
|
|
|
52,866 |
|
Retained earnings |
|
|
465,246 |
|
|
|
437,415 |
|
|
|
445,366 |
|
Less treasury stock |
|
|
(210,484 |
) |
|
|
(108,714 |
) |
|
|
(132,020 |
) |
Accumulated other comprehensive loss, net |
|
|
(13,013 |
) |
|
|
(1,196 |
) |
|
|
(2,201 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity |
|
|
314,695 |
|
|
|
398,037 |
|
|
|
382,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity |
|
$ |
577,894 |
|
|
$ |
538,571 |
|
|
$ |
526,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Nine months ended |
|
|
|
May 31, |
|
|
May 31, |
|
($ in thousands) |
|
2015 |
|
|
2014 |
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
29,490 |
|
|
$ |
40,183 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
12,148 |
|
|
|
11,131 |
|
Asset impairment |
|
|
270 |
|
|
|
|
|
Provision for uncollectible accounts receivable |
|
|
569 |
|
|
|
891 |
|
Deferred income taxes |
|
|
(1,541 |
) |
|
|
(3,692 |
) |
Share-based compensation expense |
|
|
2,599 |
|
|
|
3,218 |
|
Other, net |
|
|
3,926 |
|
|
|
(430 |
) |
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Receivables |
|
|
(6,326 |
) |
|
|
17,014 |
|
Inventories |
|
|
(1,244 |
) |
|
|
(9,694 |
) |
Other current assets |
|
|
(2,560 |
) |
|
|
(3,595 |
) |
Accounts payable |
|
|
6,212 |
|
|
|
4,501 |
|
Other current liabilities |
|
|
(6,340 |
) |
|
|
773 |
|
Current income taxes payable |
|
|
(3,730 |
) |
|
|
4,657 |
|
Other noncurrent assets and liabilities |
|
|
1,912 |
|
|
|
962 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
35,385 |
|
|
|
65,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(11,228 |
) |
|
|
(7,836 |
) |
Acquisition of business, net of cash acquired |
|
|
(67,176 |
) |
|
|
|
|
Proceeds from settlement of net investment hedges |
|
|
7,363 |
|
|
|
280 |
|
Payments for settlement of net investment hedges |
|
|
(606 |
) |
|
|
(2,017 |
) |
Other investing activities, net |
|
|
(1,724 |
) |
|
|
19 |
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities |
|
|
(73,371 |
) |
|
|
(9,554 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options |
|
|
256 |
|
|
|
455 |
|
Common stock withheld for payroll tax withholdings |
|
|
(1,706 |
) |
|
|
(2,027 |
) |
Proceeds from issuance of long-term debt |
|
|
115,000 |
|
|
|
|
|
Principal payments on long-term debt |
|
|
(75 |
) |
|
|
|
|
Issuance costs related to debt |
|
|
(618 |
) |
|
|
|
|
Excess tax benefits from share-based compensation |
|
|
510 |
|
|
|
742 |
|
Repurchase of common shares |
|
|
(78,464 |
) |
|
|
(17,753 |
) |
Dividends paid |
|
|
(9,610 |
) |
|
|
(8,348 |
) |
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities |
|
|
25,293 |
|
|
|
(26,931 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
|
(5,131 |
) |
|
|
690 |
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents |
|
|
(17,824 |
) |
|
|
30,124 |
|
Cash and cash equivalents, beginning of period |
|
|
171,842 |
|
|
|
151,927 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period |
|
$ |
154,018 |
|
|
$ |
182,051 |
|
|
|
|
|
|
|
|
|
|
Lindsay (NYSE:LNN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Lindsay (NYSE:LNN)
Historical Stock Chart
From Apr 2023 to Apr 2024