- Second quarter consolidated revenues increase 39 percent to
$200.1 million with EPS of $1.32
- Irrigation revenues increase 52 percent on continued strength
in agricultural markets and favorable pricing
- Infrastructure revenues decrease 23 percent on lower Road
Zipper System® sales
Lindsay Corporation (NYSE: LNN), a leading global manufacturer
and distributor of irrigation and infrastructure equipment and
technology, today announced results for its second quarter of
fiscal 2022, which ended on February 28, 2022.
Second Quarter Summary
Revenues for the second quarter of fiscal 2022 were $200.1
million, an increase of $56.6 million, or 39 percent, compared to
revenues of $143.6 million in the prior year second quarter. Net
earnings for the quarter were $14.6 million, or $1.32 per diluted
share, compared with net earnings of $11.9 million, or $1.08 per
diluted share, for the prior year second quarter.
“Global agricultural market conditions continue to be favorable
and have contributed to an increase in demand for our irrigation
equipment,” said Randy Wood, President and Chief Executive Officer.
“At the same time, the effects of the global pandemic continue to
impact our business and create operational challenges. During the
quarter we experienced a short-term disruption in labor
availability in our Nebraska manufacturing facility due to an
increase in employee absences caused by the Omicron variant. Our
teams have continued to prioritize safety and manage well in this
dynamic environment, and we were pleased to see absences decline as
we completed the quarter.”
Second Quarter Segment Results
Irrigation segment revenues for the second quarter of fiscal
2022 were $180.7 million, an increase of $62.2 million, or 52
percent, compared to $118.6 million in the prior year second
quarter. North America irrigation revenues of $100.7 million
increased $20.6 million, or 26 percent, compared to the prior year
second quarter. The increase in North America irrigation revenues
resulted primarily from higher average selling prices. Unit sales
volume was lower year-over-year due to the impact of
Omicron-related employee absences on production and shipping
capabilities. International irrigation revenues of $80.0 million
increased $41.6 million, or 108 percent, compared to the prior year
second quarter. The increase in international irrigation revenues
resulted primarily from higher unit sales volumes, along with
higher selling prices. Revenues in Brazil more than tripled
compared to the prior year second quarter, and we also completed
final deliveries of a large project in Egypt.
Irrigation segment operating income for the second quarter of
fiscal 2022 was $24.7 million, an increase of $6.7 million, or 37
percent, compared to the prior year second quarter. Operating
margin was 13.7 percent of sales, compared to 15.2 percent of sales
in the prior year second quarter. The impact of higher irrigation
system unit volume was partially offset by the impact of higher
input costs that were not fully recovered by higher pricing. Second
quarter operating results were also reduced by approximately $2.8
million resulting from the impact of the LIFO method of accounting
for inventory (under which higher raw material costs are recognized
in cost of goods sold rather than in ending inventory values), and
by approximately $1.8 million of non-recurring expenses related to
factory maintenance and outside consulting services.
Infrastructure segment revenues for the second quarter of fiscal
2022 were $19.4 million, a decrease of $5.6 million, or 23 percent,
compared to $25.0 million in the prior year second quarter. The
decrease resulted from lower Road Zipper System® sales and lease
revenue, which were partially offset by increased sales of road
safety products compared to the prior year.
Infrastructure segment operating income for the second quarter
of fiscal 2022 was $0.3 million, a decrease of $6.0 million, or 95
percent, compared to the prior year second quarter. Operating
margin was 1.7 percent of sales, compared to 25.4 percent of sales
in the prior year second quarter. Current year results reflect
lower revenues and a less favorable margin mix of revenues compared
to the prior year second quarter and under absorbed overhead
costs.
The backlog of unfilled orders at February 28, 2022 was $111.0
million compared with $101.4 million at February 28, 2021. A higher
backlog of orders in irrigation was partially offset by a lower
backlog in infrastructure.
Outlook
“Strong agricultural commodity prices and farm income
projections support a solid demand environment for irrigation
equipment in North America. We expect these same dynamics, along
with increased concerns around food security, to drive growth in
our international markets. Inflationary pressures and supply chain
challenges are also expected to persist in the near term, and we
continue to focus on protecting and improving margins in this
environment,” said Mr. Wood. “In our infrastructure business, we
are actively managing projects through our sales funnel and expect
an increase in project sales in the second half of the fiscal
year.”
Mr. Wood concluded, “We continue to invest in our innovation
growth strategy that addresses the needs of a growing population
and provides solutions that improve efficiency and promote
sustainability.”
Second Quarter Conference Call
Lindsay’s fiscal 2022 second 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
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS
(Unaudited)
Three months ended
Six months ended
(in thousands, except per share
amounts)
February 28, 2022
February 28, 2021
February 28, 2022
February 28, 2021
Operating revenues
$
200,137
$
143,577
$
366,288
$
252,062
Cost of operating revenues
157,193
102,403
285,907
179,480
Gross profit
42,944
41,174
80,381
72,582
Operating expenses:
Selling expense
7,932
7,778
15,922
15,110
General and administrative expense
13,022
14,275
25,901
27,727
Engineering and research expense
3,652
3,312
6,859
6,402
Total operating expenses
24,606
25,365
48,682
49,239
Operating income
18,338
15,809
31,699
23,343
Other income (expense):
Interest expense
(1,176
)
(1,205
)
(2,339
)
(2,406
)
Interest income
160
268
338
571
Other income (expense), net
1,882
(311
)
(1,018
)
(65
)
Total other income (expense)
866
(1,248
)
(3,019
)
(1,900
)
Earnings before income taxes
19,204
14,561
28,680
21,443
Income tax expense
4,638
2,685
6,213
2,472
Net earnings
$
14,566
$
11,876
$
22,467
$
18,971
Earnings per share:
Basic
$
1.33
$
1.09
$
2.05
$
1.75
Diluted
$
1.32
$
1.08
$
2.04
$
1.74
Shares used in computing earnings per
share:
Basic
10,974
10,884
10,950
10,865
Diluted
11,014
10,981
11,020
10,934
Cash dividends declared per share
$
0.33
$
0.32
$
0.66
$
0.64
LINDSAY CORPORATION AND
SUBSIDIARIES
SUMMARY OPERATING
RESULTS
(Unaudited)
Three months ended
Six months ended
(in thousands)
February 28, 2022
February 28, 2021
February 28, 2022
February 28, 2021
Operating revenues:
Irrigation:
North America
$
100,730
$
80,178
179,705
$
132,968
International
80,029
38,394
146,962
72,961
Irrigation segment
180,759
118,572
$
326,667
$
205,929
Infrastructure segment
19,378
25,005
39,621
46,133
Total operating revenues
$
200,137
$
143,577
$
366,288
$
252,062
Operating income (loss):
Irrigation segment
$
24,734
$
18,045
$
41,946
$
28,678
Infrastructure segment
324
6,341
3,090
10,597
Corporate
(6,720
)
(8,577
)
(13,337
)
(15,932
)
Total operating income
$
18,338
$
15,809
$
31,699
$
23,343
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)
February 28, 2022
February 28, 2021
August 31, 2021
ASSETS
Current assets:
Cash and cash equivalents
$
68,951
$
110,775
$
127,107
Marketable securities
24,934
19,555
19,604
Receivables, net
134,694
94,211
93,609
Inventories, net
187,328
121,566
145,244
Other current assets, net
34,350
29,509
30,539
Total current assets
450,257
375,616
416,103
Property, plant, and equipment, net
92,291
89,221
91,997
Intangibles, net
19,311
22,383
20,367
Goodwill
67,679
68,087
67,968
Operating lease right-of-use assets
16,724
20,173
18,281
Deferred income tax assets
5,352
10,347
8,113
Other noncurrent assets, net
24,970
10,821
14,356
Total assets
$
676,584
$
596,648
$
637,185
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
74,345
$
39,934
$
45,209
Current portion of long-term debt
220
215
217
Other current liabilities
86,837
74,687
92,814
Total current liabilities
161,402
114,836
138,240
Pension benefits liabilities
5,567
6,182
5,754
Long-term debt
115,428
115,599
115,514
Operating lease liabilities
17,170
20,174
18,301
Deferred income tax liabilities
783
900
832
Other noncurrent liabilities
19,696
19,933
20,099
Total liabilities
320,046
277,624
298,740
Shareholders' equity:
Preferred stock
—
—
—
Common stock
19,061
18,990
18,991
Capital in excess of stated value
90,711
84,206
86,495
Retained earnings
543,355
511,728
528,130
Less treasury stock - at cost
(277,238
)
(277,238
)
(277,238
)
Accumulated other comprehensive loss,
net
(19,351
)
(18,662
)
(17,933
)
Total shareholders' equity
356,538
319,024
338,445
Total liabilities and shareholders'
equity
$
676,584
$
596,648
$
637,185
LINDSAY CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
(in thousands)
February 28, 2022
February 28, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings
$
22,467
$
18,971
Adjustments to reconcile net earnings to
net cash (used in) provided by operating activities:
Depreciation and amortization
9,912
9,878
Provision for uncollectible accounts
receivable
322
246
Deferred income taxes
3,052
206
Share-based compensation expense
2,411
4,047
Unrealized foreign currency transaction
gain
(111
)
(754
)
Other, net
627
1,804
Changes in assets and liabilities:
Receivables
(41,286
)
(10,769
)
Inventories
(42,412
)
(16,245
)
Other current assets
(2,541
)
(9,492
)
Accounts payable
28,757
10,962
Other current liabilities
(8,317
)
334
Other noncurrent assets and
liabilities
(8,732
)
1,940
Net cash (used in) provided by operating
activities
(35,851
)
11,128
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and
equipment
(6,926
)
(16,556
)
Purchases of marketable securities
(18,468
)
(8,313
)
Proceeds from maturities of marketable
securities
12,752
8,043
Other investing activities, net
(2,974
)
(860
)
Net cash used in investing activities
(15,616
)
(17,686
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock
options
2,821
3,814
Common stock withheld for payroll tax
obligations
(1,181
)
(1,269
)
Proceeds from employee stock purchase
plan
235
—
Principal payments on long-term debt
(108
)
(88
)
Dividends paid
(7,242
)
(6,967
)
Net cash used in financing activities
(5,475
)
(4,510
)
Effect of exchange rate changes on cash
and cash equivalents
(1,214
)
440
Net change in cash and cash
equivalents
(58,156
)
(10,628
)
Cash and cash equivalents, beginning of
period
127,107
121,403
Cash and cash equivalents, end of
period
$
68,951
$
110,775
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220404006038/en/
LINDSAY CORPORATION: Brian Ketcham Senior Vice President
& Chief Financial Officer 402-827-6579 THREE PART
ADVISORS: Hala Elsherbini 214-442-0016
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