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8-K - FORM 8-K - LINDSAY CORPd611322d8k.htm

EXHIBIT 99.1

 

LOGO      2222 NO. 111TH ST. OMAHA, NE 68164 TEL: 402-829-6800 FAX: 402-829-6836

For further information, contact:

 

LINDSAY CORPORATION:

Jim Raabe

  

HALLIBURTON INVESTOR RELATIONS:

Hala Elsherbini or Geralyn DeBusk

Vice President & Chief Financial Officer    972-458-8000

402-827-6579

  

Lindsay Corporation Reports Fiscal 2013 Fourth Quarter and Full Year Results

OMAHA, Neb., October 10, 2013—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its fourth quarter ended August 31, 2013.

Fourth Quarter Results

Fourth quarter fiscal 2013 revenues were a record $148.4 million, increasing 16 percent from $127.8 million in the same prior year period. Net earnings were $10.4 million or $0.81 per diluted share compared with $8.8 million or $0.68 per diluted share in the prior year.

Total irrigation equipment revenues increased 19 percent to $128.2 million from $107.9 million in the prior fiscal year’s fourth quarter due to strong demand in international markets. U.S. irrigation revenues of $53.9 million decreased 4 percent off of drought driven sales increases in the corn belt last year, while international irrigation revenues of $74.3 million increased 44 percent including $17.4 million sales from a contract to provide irrigation equipment in Iraq. Infrastructure revenues increased 2 percent to $20.2 million.

Gross margin was 26.0 percent of sales compared to 25.6 percent of sales in the prior year’s fourth quarter. Gross margins in irrigation declined by approximately 1 percentage point as U.S. margins improved but were offset by a higher mix of international sales. Infrastructure gross margins improved by approximately 8 percentage points primarily due to a larger mix of Road Zipper sales.

Operating expenses were $22.8 million compared to $20.1 million in the same prior year period. Current year expenses included higher personnel and incentive compensation, acquisition expenses and selling expenses associated with higher revenues. Operating expenses were 15.3 percent of sales in the fourth quarter of fiscal 2013 compared with 15.7 percent of sales in the prior year period. Operating margins of 10.6 percent increased from 9.9 percent in the prior year period.

Cash and cash equivalents of $151.9 million were $8.5 million higher compared to the end of the fourth quarter in the prior fiscal year, while debt decreased $4.3 million.

Backlog of unshipped orders at August 31, 2013 was $66.5 million compared with $57.1 million at August 31, 2012 and $80.0 million at May 31, 2013. Current backlog includes $4.7 million remaining from the Iraq order announced in the second quarter. Backlog increased year over year in other international irrigation markets and infrastructure, while backlog in U.S irrigation markets declined.

Twelve Month Results

Total revenues for the year ended August 31, 2013 were $690.8 million, a 25 percent increase from $551.3 million in the same prior year period. Net earnings were $70.6 million or $5.47 per diluted share compared with $43.3 million or $3.38 per diluted share in the prior year. Fiscal 2012 operating costs included $7.2 million of expenses, or $0.37 per diluted share on an after tax basis, relating to an increase in the Company’s estimated liability for environmental remediation at its Lindsay, Nebraska facility.


Total irrigation equipment revenues increased 32 percent to $626.0 million from $475.3 million during the prior fiscal year. U.S. irrigation revenues of $385.7 million increased 26 percent, while international irrigation revenues of $240.3 million increased 41 percent due to sales growth in most markets, and most significantly in the Middle East and South America. Infrastructure revenues decreased 15 percent to $64.8 million.

Outlook

Rick Parod, president and chief executive officer, commented, “Record sales in our U.S. and international irrigation markets have led to an outstanding year in 2013. The fourth quarter results also reflected strong growth in sales and profit, although we experienced a slowing of orders in the U.S. irrigation markets in our traditionally slower fourth quarter, as compared to the drought effect on demand at the same time last year.”

Parod added, “Drivers for the Company’s markets of population growth, expanded food production and efficient water use provide a solid backdrop for long term growth. We anticipate lower U.S. irrigation sales in 2014 due to lower commodity prices and challenging comparisons to the prior year. Demand in international markets appears more stable due to lower mechanized irrigation penetration, and the acquisition of the Lakos brand of filtration products reinforces our positioning and provides additional growth opportunities. Regarding the infrastructure business, with the recent restructuring implemented we are positioned for profitable growth as those markets improve.”

Fourth-Quarter Conference Call

Lindsay’s fiscal 2013 fourth 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 in the U.S., or (706) 758-0065 internationally, and referring to conference ID # 69955879. 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 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 August 31, 2013 Lindsay had approximately 12.9 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.

For more information regarding Lindsay Corporation, see the Company’s 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 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)

 

     Three months ended August 31,     Years ended August 31,  

(in thousands, except per share amounts)

   2013     2012     2013     2012  

Operating revenues

   $ 148,397      $ 127,817      $ 690,848      $ 551,255   

Cost of operating revenues

     109,820        95,069        496,014        402,737   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     38,577        32,748        194,834        148,518   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Selling expense

     8,942        6,968        32,937        28,104   

General and administrative expense

     11,385        10,434        43,441        38,198   

Engineering and research expense

     2,449        2,654        11,395        9,481   

Environmental remediation expense

     —          —          —          7,225   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     22,776        20,056        87,773        83,008   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     15,801        12,692        107,061        65,510   

Interest expense

     (46     (116     (304     (492

Interest income

     129        177        496        504   

Other (expense) income, net

     (198     (100     54        (414
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before income taxes

     15,686        12,653        107,307        65,108   

Income tax expense

     5,258        3,894        36,737        21,831   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

   $ 10,428      $ 8,759      $ 70,570      $ 43,277   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

        

Basic

   $ 0.81      $ 0.69      $ 5.50      $ 3.41   

Diluted

   $ 0.81      $ 0.68      $ 5.47      $ 3.38   

Shares used in computing earnings per share:

        

Basic

     12,865        12,718        12,830        12,704   

Diluted

     12,943        12,843        12,901        12,810   

Cash dividends declared per share

   $ 0.130      $ 0.115      $ 0.475      $ 0.385   


Lindsay Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(unaudited)

 

     August 31,     August 31,  

(in thousands, except par values)

   2013     2012  

ASSETS

    

Current Assets:

    

Cash and cash equivalents

   $ 151,927      $ 143,444   

Receivables, net

     120,291        82,565   

Inventories, net

     68,607        52,873   

Deferred income taxes

     12,705        9,505   

Other current assets

     15,261        10,478   
  

 

 

   

 

 

 

Total current assets

     368,791        298,865   

Property, plant and equipment, net

     65,064        56,180   

Intangible assets, net

     36,007        25,070   

Goodwill

     37,414        29,961   

Other noncurrent assets

     5,020        5,455   
  

 

 

   

 

 

 

Total assets

   $ 512,296      $ 415,531   
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Current Liabilities:

    

Accounts payable

   $ 42,276      $ 31,372   

Current portion of long-term debt

     —          4,285   

Other current liabilities

     59,816        44,781   
  

 

 

   

 

 

 

Total current liabilities

     102,092        80,438   

Pension benefits liabilities

     6,324        6,821   

Deferred income taxes

     15,415        9,984   

Other noncurrent liabilities

     7,827        7,450   
  

 

 

   

 

 

 

Total liabilities

     131,658        104,693   
  

 

 

   

 

 

 

Shareholders’ equity:

    

Preferred stock

     —          —     

Common stock

     18,571        18,421   

Capital in excess of stated value

     49,764        43,140   

Retained earnings

     405,580        341,115   

Less treasury stock

     (90,961     (90,961

Accumulated other comprehensive loss, net

     (2,316     (877
  

 

 

   

 

 

 

Total shareholders’ equity

     380,638        310,838   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 512,296      $ 415,531   
  

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

     Years Ended August 31,  

(in thousands)

   2013     2012  

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net earnings

   $ 70,570      $ 43,277   

Adjustments to reconcile net earnings to net cash provided by operating activities:

    

Depreciation and amortization

     12,600        12,468   

Provision for uncollectible accounts receivable

     1,543        379   

Deferred income taxes

     (5,048     (3,868

Share-based compensation expense

     4,573        3,939   

Other, net

     (859     959   

Changes in assets and liabilities:

    

Receivables

     (36,557     (7,570

Inventories

     (10,020     (5,609

Other current assets

     (4,054     (641

Accounts payable

     9,188        723   

Other current liabilities

     14,578        (1,602

Current taxes payable

     764        5,408   

Other noncurrent assets and liabilities

     227        4,576   
  

 

 

   

 

 

 

Net cash provided by operating activities

     57,505        52,439   
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchases of property, plant and equipment

     (11,136     (9,890

Proceeds from sale of property, plant and equipment

     22        116   

Acquisition of business, net of cash acquired

     (29,007     —     

Proceeds from settlement of net investment hedges

     1,944        3,378   

Payments for settlement of net investment hedges

     (2,904     (453
  

 

 

   

 

 

 

Net cash used in investing activities

     (41,081     (6,849
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Proceeds from exercise of stock options

     2,036        567   

Common stock withheld for payroll tax withholdings

     (2,441     (577

Principal payments on long-term debt

     (4,285     (4,286

Excess tax benefits from share-based compensation

     2,800        387   

Dividends paid

     (6,105     (4,894
  

 

 

   

 

 

 

Net cash used in financing activities

     (7,995     (8,803
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     54        (1,510
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     8,483        35,277   

Cash and cash equivalents, beginning of period

     143,444        108,167   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 151,927      $ 143,444