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8-K - FORM 8-K - LINDSAY CORPd652515d8k.htm
EX-99.2 - EX-99.2 - LINDSAY CORPd652515dex992.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:   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 2014 First Quarter Results

Announces Capital Allocation Plan

Doubles Annual Cash Dividend to $1.04 Per Share

Plans to Repurchase $100 Million to $150 Million in Common Stock

OMAHA, Neb., January 3, 2014—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its first quarter ended November 30, 2013.

First Quarter Results

First quarter fiscal 2014 revenues were $147.7 million, versus $147.4 million of revenues in the same prior year period. Net earnings were $10.2 million or $0.79 per diluted share compared with $14.7 million or $1.15 per diluted share in the prior year.

Total irrigation equipment revenues decreased 4 percent to $129.2 million from $134.2 million in the prior fiscal year’s first quarter. U.S. revenues decreased and were partially offset by increased demand in international markets and the addition of Claude Laval Corporation. U.S. irrigation revenues of $79.3 million declined 18 percent versus the drought-driven sales last year, while international irrigation revenues of $49.9 million increased 32 percent led by growth in South America and Australia. Infrastructure revenues increased 41 percent to $18.5 million with increases in nearly all of the Company’s infrastructure product lines.

Gross margin was 27.2 percent of sales compared to 29.1 percent of sales in the prior year’s first quarter. Gross margins in irrigation declined by approximately 2 percentage points due to a $2.3 million charge related to a product warranty matter and a higher mix of international sales. Infrastructure gross margins improved by approximately 5 percentage points primarily due to a larger mix of Road Zipper System sales.

Operating expenses were $24.2 million compared to $20.6 million in the same prior year period. The increase in the current year includes expenses of a recently acquired company and higher personnel expenses. Operating expenses were 16.4 percent of sales in the first quarter of fiscal 2014 compared with 14.0 percent of sales in the prior year period. Operating margins were 10.8 percent in the first quarter, versus 15.1 percent in the prior year period.

Cash and cash equivalents of $151.8 million were $0.4 million lower compared to the end of the first quarter in the prior fiscal year, while debt decreased $3.2 million.

Backlog of unshipped orders at November 30, 2013 was $86.6 million compared with $85.1 million at November 30, 2012 and $66.5 million at August 31, 2013. Backlog declined in U.S. irrigation markets and was offset by an increase in backlog in international irrigation markets and in the infrastructure segment. The increase in infrastructure backlog included a $12.7 million Road Zipper System order from the Golden Gate Bridge Highway & Transportation District.


Capital Allocation Plan

The Company is releasing further detail and clarification of its plans for capital allocation including plans for enhancing returns for shareholders through dividends and share repurchases. Priorities for uses of cash include:

 

    Investment in organic growth including capital expenditures and expansion of international markets,

 

    Annual increases in dividends to shareholders

 

    Synergistic water related acquisitions that provide attractive returns to shareholders, and

 

    Opportunistic share repurchases taking into account cyclical and seasonal fluctuations

Dividend

The Company is announcing that its Board of Directors is increasing its regular quarterly cash dividend by 100% to $0.26 per share, payable February 28, 2014, to shareholders of record on February 14, 2014.

Share Repurchases

The Company is announcing that its Board of Directors has replaced its existing share repurchase authorization with an increased authorization to repurchase up to $150 million of common stock. The authorization is in support of the Company’s plans to opportunistically repurchase $100 million to $150 million of common stock over the next 24 months.

Outlook

Rick Parod, president and chief executive officer, commented, “Total Company revenues remained at record levels in the first quarter while U.S. irrigation market sales declined as anticipated given the significant decline in agricultural commodity prices. The infrastructure segment made significant progress, including the award of a Road Zipper project on the Golden Gate Bridge. Irrigation sales for the remainder of the fiscal year remain uncertain as the decline in grain prices are likely to continue to result in significantly lower U.S. revenues, however we do not expect to have visibility into the selling season until mid-to-late in the second fiscal quarter.”

Parod added, “While we anticipate a decline from peak irrigation revenues for the near-term, drivers for the Company’s markets of population growth, expanded food production and efficient water use, support our expectation for long-term growth. Our overall capital allocation plan articulates our plans to continue to invest in attaining revenue and earnings growth, combined with a defined process for enhancing returns to shareholders.”

First-Quarter Conference Call

Lindsay’s fiscal 2014 first 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 # 27010515. 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 November 30, 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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

     Three months ended  
     November 30,     November 30,  

($ and shares in thousands, except per share amounts)

   2013     2012  

Operating revenues

   $ 147,671      $ 147,370   

Cost of operating revenues

     107,520        104,513   
  

 

 

   

 

 

 

Gross profit

     40,151        42,857   
  

 

 

   

 

 

 

Operating expenses:

    

Selling expense

     9,756        7,321   

General and administrative expense

     11,743        10,118   

Engineering and research expense

     2,660        3,154   
  

 

 

   

 

 

 

Total operating expenses

     24,159        20,593   
  

 

 

   

 

 

 

Operating income

     15,992        22,264   

Other income (expense):

    

Interest expense

     (39     (143

Interest income

     135        138   

Other income (expense), net

     (271     124   
  

 

 

   

 

 

 

Earnings before income taxes

     15,817        22,383   

Income tax expense

     5,583        7,655   
  

 

 

   

 

 

 

Net earnings

   $ 10,234      $ 14,728   
  

 

 

   

 

 

 

Earnings per share:

    

Basic

   $ 0.79      $ 1.15   

Diluted

   $ 0.79      $ 1.15   

Shares used in computing earnings per share:

    

Basic

     12,889        12,756   

Diluted

     12,951        12,853   

Cash dividends declared per share

   $ 0.130      $ 0.115   


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

     November 30,     November 30,     August 31,  

($ and shares in thousands, except par values)

   2013     2012     2013  

ASSETS

      

Current Assets:

      

Cash and cash equivalents

   $ 151,803      $ 152,173      $ 151,927   

Receivables, net

     122,093        88,893        120,291   

Inventories, net

     75,614        67,250        68,607   

Deferred income taxes

     13,469        8,171        12,705   

Other current assets

     15,989        10,719        15,261   
  

 

 

   

 

 

   

 

 

 

Total current assets

     378,968        327,206        368,791   
  

 

 

   

 

 

   

 

 

 

Property, Plant and Equipment:

      

Cost

     156,299        139,032        153,422   

Less accumulated depreciation

     (91,047     (82,947     (88,358
  

 

 

   

 

 

   

 

 

 

Property, plant and equipment, net

     65,252        56,085        65,064   
  

 

 

   

 

 

   

 

 

 

Intangibles, net

     35,029        24,410        36,007   

Goodwill

     37,193        30,114        37,414   

Other noncurrent assets

     5,261        5,063        5,020   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 521,703      $ 442,878      $ 512,296   
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current Liabilities:

      

Accounts payable

   $ 45,902      $ 50,662      $ 42,276   

Current portion of long-term debt

     —          3,214        —     

Other current liabilities

     57,132        39,141        59,816   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     103,034        93,017        102,092   
  

 

 

   

 

 

   

 

 

 

Pension benefits liabilities

     6,263        6,749        6,324   

Deferred income taxes

     14,715        9,622        15,415   

Other noncurrent liabilities

     8,022        7,417        7,827   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     132,034        116,805        131,658   
  

 

 

   

 

 

   

 

 

 

Shareholders’ Equity:

      

Preferred stock

     —          —          —     

Common stock

     18,620        18,531        18,571   

Capital in excess of stated value

     49,288        44,995        49,764   

Retained earnings

     414,133        354,367        405,580   

Less treasury stock

     (90,961     (90,961     (90,961

Accumulated other comprehensive loss, net

     (1,411     (859     (2,316
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     389,669        326,073        380,638   
  

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 521,703      $ 442,878      $ 512,296   
  

 

 

   

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Three months ended  
     November 30,     November 30,  

($ in thousands)

   2013     2012  

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net earnings

   $ 10,234      $ 14,728   

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

    

Depreciation and amortization

     3,707        3,130   

Provision for uncollectible accounts receivable

     442        199   

Deferred income taxes

     (1,365     (782

Share-based compensation expense

     1,180        1,219   

Other, net

     (244     157   

Changes in assets and liabilities:

    

Receivables

     (1,608     (6,441

Inventories

     (6,608     (14,341

Other current assets

     (431     (357

Accounts payable

     3,356        19,210   

Other current liabilities

     (5,986     (4,396

Current taxes payable

     3,140        1,312   

Other noncurrent assets and liabilities

     111        (181
  

 

 

   

 

 

 

Net cash provided by operating activities

     5,928        13,457   
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchases of property, plant and equipment

     (2,387     (2,215

Proceeds from sale of property, plant and equipment

     34        —     

Proceeds from settlement of net investment hedges

     101        —     

Payments for settlement of net investment hedges

     (1,035     (1,093
  

 

 

   

 

 

 

Net cash used in investing activities

     (3,287     (3,308
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Proceeds from exercise of stock options

     —          1,082   

Common stock withheld for payroll tax withholdings

     (2,027     (2,441

Principal payments on long-term debt

     —          (1,072

Excess tax benefits from share-based compensation

     465        2,185   

Dividends paid

     (1,681     (1,476
  

 

 

   

 

 

 

Net cash used in financing activities

     (3,243     (1,722
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     478        302   
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (124     8,729   

Cash and cash equivalents, beginning of period

     151,927        143,444   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 151,803      $ 152,173