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| 8-K - FORM 8-K - LINDSAY CORP | c14921e8vk.htm |
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: | |
Dave Downing
|
Jeff Elliott or Geralyn DeBusk | |
CFO and President — International Operations
|
972-458-8000 | |
402-827-6235 |
Lindsay Corporation Reports Fiscal 2011 Second Quarter Results
OMAHA, Neb., March 30, 2011—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation
systems and infrastructure products, today announced results for its fiscal second quarter ended
February 28, 2011.
Second Quarter Results
Second quarter fiscal 2011 revenues of $120.2 million increased 41 percent from $85.2 million in
the same prior year period. Net earnings were $11.3 million or $0.89 per diluted share compared
with $6.0 million or $0.48 per diluted share, in the prior fiscal year’s second quarter.
Total irrigation equipment revenues increased 35 percent to $91.7 million from $67.9 million in the
prior fiscal year’s second quarter. U.S. irrigation revenues of $66.5 million increased 72
percent, while international irrigation revenues of $25.2 million decreased 14 percent as compared
to the same prior year period. Infrastructure revenues increased 65 percent to $28.5 million
primarily from increased sales of Quickchange® Moveable BarrierTM
(QMB®) product.
Gross margin was 28.3 percent compared to 26.0 percent in the prior year’s second quarter.
Infrastructure margins were higher primarily due to increased revenues of higher margin
QMB® product. Irrigation margins were comparable to the same prior year
period after eliminating the benefit realized from Nebraska’s state economic development incentive
wage and investment credits included in last fiscal year’s second quarter margins.
Operating expenses increased $1.7 million to $16.9 million compared to the second quarter of the
prior fiscal year primarily on higher research and development expenses, sales commissions for
QMB® projects, personnel expenses related to growth and incremental operating
expenses related to the Digitec and WMC businesses acquired during the past year. These increases
were partially offset by lower expenses for environmental monitoring and remediation as a $0.7
million expense was recorded in the second fiscal quarter of 2010. Operating income was $17.1
million compared to $6.9 million in the same prior year period.
Cash and cash equivalents of $78.4 million were $13.2 million lower compared with last year. Debt
decreased $11.8 million over the same period and $7.7 million of cash was used in acquisitions
completed in the past year. At February 28, 2011, accounts receivable and inventory balances
combined were $29.5 million higher compared to the prior year due to increased business activity.
Lindsay’s backlog of unshipped orders at February 28, 2011 was $64.3 million compared with $59.7
million at November 30, 2010 and $33.6 million at February 28, 2010.
Six Month Results
Total revenues for the six months ended February 28, 2011 were $209.3 million, a 22 percent
increase from $171.2 million for the prior year’s six-month period. Total irrigation equipment
revenues of $151.6 million increased 25
percent from a year ago, while infrastructure revenues increased 15 percent to $57.7 million. The
Company’s operating income for the six-month period was $23.7 million compared to $18.1 million
during the same prior year period. Net earnings were $15.6 million or $1.23 per diluted share for
the six months ended February 28, 2011, as compared to $12.7 million, or $1.01 per diluted share
for the prior year period.
Outlook
Rick Parod, president and chief executive officer, commented, “Conditions in the global agriculture
markets point to continued strong demand for irrigation equipment. Commodity prices have improved
significantly from the previous year and the USDA projects 2011 net farm income for the U.S. to be
the highest on record and 20% higher than 2010. Order flow continues to be strong during the
primary irrigation selling season.”
Parod continued, “Our infrastructure segment results improved significantly over the prior year on
higher QMB® sales and improvements in the rail and contract manufacturing
businesses. The outlook for infrastructure spending remains unclear with uncertain timing on a
multi-year U.S. highway bill and significant government budget constraints in Europe.”
Parod added, “For our business overall, the global, long-term drivers of water use efficiency,
population growth, increasing importance of biofuels, and improvements in infrastructure safety and
security remain positive.”
Second-Quarter Conference Call
Lindsay’s fiscal 2011 second quarter investor conference call is scheduled for 11:00 a.m. Eastern
Time today. Interested investors may participate in the call by dialing (888) 748-0479
domestically, or (706) 758-9823 internationally, and referring to conference ID # 51553148.
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. 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 February 28, 2011, Lindsay had
approximately 12.6 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| Three months ended | Six months ended | |||||||||||||||
| February 28, | February 28, | |||||||||||||||
| (in thousands, except per share amounts) | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Operating revenues |
$ | 120,168 | $ | 85,196 | $ | 209,334 | $ | 171,166 | ||||||||
Cost of operating revenues |
86,159 | 63,067 | 151,102 | 123,233 | ||||||||||||
Gross profit |
34,009 | 22,129 | 58,232 | 47,933 | ||||||||||||
Operating expenses: |
||||||||||||||||
Selling expense |
6,911 | 5,251 | 13,929 | 10,774 | ||||||||||||
General and administrative expense |
7,265 | 8,279 | 15,296 | 15,615 | ||||||||||||
Engineering and research expense |
2,772 | 1,685 | 5,336 | 3,469 | ||||||||||||
Total operating expenses |
16,948 | 15,215 | 34,561 | 29,858 | ||||||||||||
Operating income |
17,061 | 6,914 | 23,671 | 18,075 | ||||||||||||
Other income (expense): |
||||||||||||||||
Interest expense |
(213 | ) | (356 | ) | (399 | ) | (817 | ) | ||||||||
Interest income |
37 | 83 | 79 | 166 | ||||||||||||
Other income (expense), net |
116 | (85 | ) | 227 | 60 | |||||||||||
Earnings before income taxes |
17,001 | 6,556 | 23,578 | 17,484 | ||||||||||||
Income tax provision |
5,676 | 578 | 7,967 | 4,829 | ||||||||||||
Net earnings |
$ | 11,325 | $ | 5,978 | $ | 15,611 | $ | 12,655 | ||||||||
Basic net earnings per share |
$ | 0.90 | $ | 0.48 | $ | 1.24 | $ | 1.02 | ||||||||
Diluted net earnings per share |
$ | 0.89 | $ | 0.48 | $ | 1.23 | $ | 1.01 | ||||||||
Weighted average shares outstanding |
12,548 | 12,452 | 12,525 | 12,415 | ||||||||||||
Diluted effect of stock equivalents |
137 | 127 | 139 | 145 | ||||||||||||
Weighted average shares outstanding
assuming dilution |
12,685 | 12,579 | 12,664 | 12,560 | ||||||||||||
Cash dividends per share |
$ | 0.085 | $ | 0.080 | $ | 0.170 | $ | 0.160 | ||||||||
Lindsay Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS
| (Unaudited) | (Unaudited) | |||||||||||
| February 28, | February 28, | August 31, | ||||||||||
| ($ in thousands, except par values) | 2011 | 2010 | 2010 | |||||||||
ASSETS |
||||||||||||
Current Assets: |
||||||||||||
Cash and cash equivalents |
$ | 78,448 | $ | 91,635 | $ | 83,418 | ||||||
Receivables, net of allowance of $2,331, $2,100 and $2,244,
respectively |
75,096 | 53,297 | 63,629 | |||||||||
Inventories, net |
54,876 | 47,197 | 45,296 | |||||||||
Deferred income taxes |
5,457 | 6,645 | 6,722 | |||||||||
Other current assets |
10,035 | 7,629 | 8,946 | |||||||||
Total current assets |
223,912 | 206,403 | 208,011 | |||||||||
Property, plant and equipment, net |
58,141 | 57,414 | 57,646 | |||||||||
Other intangible assets, net |
27,807 | 27,842 | 27,715 | |||||||||
Goodwill, net |
28,528 | 23,867 | 27,395 | |||||||||
Other noncurrent assets |
4,869 | 5,640 | 4,714 | |||||||||
Total assets |
$ | 343,257 | $ | 321,166 | $ | 325,481 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
Current Liabilities: |
||||||||||||
Accounts payable |
$ | 38,261 | $ | 30,514 | $ | 26,501 | ||||||
Current portion of long-term debt |
4,286 | 6,171 | 4,286 | |||||||||
Other current liabilities |
27,049 | 29,631 | 36,295 | |||||||||
Total current liabilities |
69,596 | 66,316 | 67,082 | |||||||||
Pension benefits liabilities |
6,289 | 6,407 | 6,400 | |||||||||
Long-term debt |
6,428 | 16,369 | 8,571 | |||||||||
Deferred income taxes |
10,746 | 8,916 | 10,816 | |||||||||
Other noncurrent liabilities |
1,798 | 3,101 | 3,005 | |||||||||
Total liabilities |
94,857 | 101,109 | 95,874 | |||||||||
Shareholders’ equity: |
||||||||||||
Preferred stock, ($1 par value, 2,000,000 shares authorized, no
shares issued and outstanding) |
— | — | — | |||||||||
Common stock, ($1 par value, 25,000,000 shares authorized,
18,257,149, 18,184,620 and 18,184,820 shares issued at February,
2011 and 2010 and August 31, 2010, respectively) |
18,257 | 18,185 | 18,185 | |||||||||
Capital in excess of stated value |
32,954 | 29,972 | 30,756 | |||||||||
Retained earnings |
283,751 | 260,126 | 270,272 | |||||||||
Less treasury stock (at cost, 5,698,448, 5,698,448 and 5,698,448
shares
at February 28, 2011 and 2010 and August 31, 2010, respectively) |
(90,961 | ) | (90,961 | ) | (90,961 | ) | ||||||
Accumulated other comprehensive income, net |
4,399 | 2,735 | 1,355 | |||||||||
Total shareholders’ equity |
248,400 | 220,057 | 229,607 | |||||||||
Total liabilities and shareholders’ equity |
$ | 343,257 | $ | 321,166 | $ | 325,481 | ||||||
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Six Months Ended | ||||||||
| February 28, | ||||||||
| ($ in thousands) | 2011 | 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net earnings |
$ | 15,611 | $ | 12,655 | ||||
Adjustments to reconcile net earnings to net cash provided by
operating activities: |
||||||||
Depreciation and amortization |
5,880 | 5,350 | ||||||
Provision for uncollectible accounts receivable |
188 | 267 | ||||||
Deferred income taxes |
(575 | ) | (1,768 | ) | ||||
Stock-based compensation expense |
1,586 | 1,182 | ||||||
Gain on disposal of fixed assets |
(37 | ) | (520 | ) | ||||
Other, net |
(336 | ) | (85 | ) | ||||
Changes in assets and liabilities: |
||||||||
Receivables |
(10,137 | ) | (11,025 | ) | ||||
Inventories |
(8,003 | ) | (1,940 | ) | ||||
Other current assets |
(762 | ) | (1,755 | ) | ||||
Accounts payable |
11,245 | 10,747 | ||||||
Other current liabilities |
(7,877 | ) | (3,645 | ) | ||||
Current taxes payable |
(1,525 | ) | 2,554 | |||||
Other noncurrent assets and liabilities |
(1,343 | ) | (954 | ) | ||||
Net cash provided by operating activities |
3,915 | 11,063 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchases of property, plant and equipment |
(4,402 | ) | (1,985 | ) | ||||
Proceeds from sale of property, plant and equipment |
53 | 547 | ||||||
Acquisition of business, net of cash acquired |
(1,279 | ) | (132 | ) | ||||
Payment for settlement of net investment hedge |
(734 | ) | 565 | |||||
Net cash used in investing activities |
(6,362 | ) | (1,005 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Issuance of common stock under stock compensation plans |
(34 | ) | 544 | |||||
Principal payments on long-term debt |
(2,143 | ) | (3,086 | ) | ||||
Net borrowing on revolving line of credit |
389 | — | ||||||
Excess tax benefits from stock-based compensation |
877 | 368 | ||||||
Dividends paid |
(2,133 | ) | (1,990 | ) | ||||
Net cash used in financing activities |
(3,044 | ) | (4,164 | ) | ||||
Effect of exchange rate changes on cash |
521 | (188 | ) | |||||
Net (decrease) increase in cash and cash equivalents |
(4,970 | ) | 5,706 | |||||
Cash and cash equivalents, beginning of period |
83,418 | 85,929 | ||||||
Cash and cash equivalents, end of period |
$ | 78,448 | $ | 91,635 | ||||