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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 Fourth Quarter and Full Year Results

OMAHA, Neb., October 9, 2014—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its fourth quarter ended August 31, 2014.

Fourth Quarter Results

Fourth quarter fiscal 2014 revenues were $147.5 million versus $148.4 million of revenues in the same prior year period. Net earnings were $11.3 million or $0.89 per diluted share compared with $10.4 million or $0.81 per diluted share in the prior year.

Total irrigation equipment revenues decreased 2 percent to $125.8 million from $128.2 million in the prior fiscal year’s fourth quarter. U.S. irrigation revenues of $70.7 million increased 31 percent with sales resulting from storm damage contributing an incremental $15 million to $20 million to fourth quarter revenue. International irrigation revenues of $55.1 million decreased 26 percent as the Iraq contract contributed $17 million in revenues to the prior year fourth quarter. Excluding the impact of these two items as well as the incremental revenue from the Lakos acquisition, fourth quarter irrigation revenues would have declined approximately 11 percent. Infrastructure revenues increased 7 percent to $21.7 million with increases in road safety and rail product lines.

Gross margin was 27.1 percent of sales compared to 26.0 percent of sales in the prior year’s fourth quarter. Gross margin in irrigation increased by approximately 2 percentage points primarily due to the mix of sales. Infrastructure gross margins decreased by approximately 3 percentage points also primarily due to sales mix.

Operating expenses were $23.7 million compared to $22.8 million in the same prior year period. Excluding the acquired Lakos filtration business, operating expenses decreased $1.1 million with the largest decreases in incentive compensation and Iraq project fees. Operating expenses including Lakos were 16.1 percent of sales in the fourth quarter of fiscal 2014 compared with 15.3 percent of sales in the prior year period. Operating margins were 11.0 percent in the fourth quarter, versus 10.6 percent in the prior year period.

Cash and cash equivalents of $171.8 million were $19.9 million higher compared to the end of the prior fiscal year. During the quarter the Company repurchased 290,275 shares for $23.3 million. In fiscal 2014 the Company repurchased 497,899 shares for $41.1 million.

Backlog of unshipped orders at August 31, 2014 was $79.6 million compared with $66.5 million at August 31, 2013 and $73.6 million at May 31, 2014. The current year infrastructure backlog includes a $12.7 million Road Zipper System order for the Golden Gate Bridge which is expected to be recognized in revenue in fiscal 2015.

Twelve Month Results

Total revenues for the year ended August 31, 2014 were $617.9 million, a 11 percent decrease from $690.8 million of revenues in the same prior year period. Net earnings were $51.5 million or $4.00 per diluted share compared with $70.6 million or $5.47 per diluted share in the prior year.


Total irrigation equipment revenues decreased 14 percent to $539.9 million from $626.0 million during the prior fiscal year. U.S. irrigation revenues of $331.5 million declined 14 percent, while international irrigation revenues of $208.4 million decreased 13 percent due primarily to near-completion of the Iraq project in fiscal 2013. Infrastructure revenues increased 20 percent to $78.0 million.

Outlook

Rick Parod, president and chief executive officer, commented, “Incremental sales resulting from Spring and Summer storms in the U.S. Midwest softened the negative impact of the decline in commodity prices in the quarter. It is too early to predict the effect the lower commodity prices and projected reductions in farm income will have in fiscal 2015, however the expected conditions position the U.S. irrigation markets lower, while we expect further improvements in sales and profits in our infrastructure segment.”

Parod continued, “Longer term, drivers for the Company’s markets of population growth, expanded food production and efficient water use, and infrastructure upgrades and expansion support our expectation for growth. In fiscal 2015 we plan to continue to invest in expanding our competitive advantage in product and service offerings, our global market position, as well as in further capacity expansion in international markets. In addition, we will continue to execute against the capital allocation plan announced in January 2014.”

Fourth-Quarter Conference Call

Lindsay’s fiscal 2014 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 # 13335908. 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, 2014 Lindsay had approximately 12.4 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)

   2014     2013     2014     2013  

Operating revenues

   $ 147,522      $ 148,397      $ 617,933      $ 690,848   

Cost of operating revenues

     107,599        109,820        446,938        496,014   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     39,923        38,577        170,995        194,834   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

    

Selling expense

     9,040        8,942        38,284        32,937   

General and administrative expense

     12,129        11,385        43,228        43,441   

Engineering and research expense

     2,523        2,449        11,125        11,395   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     23,692        22,776        92,637        87,773   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     16,231        15,801        78,358        107,061   

Interest expense

     (47     (46     (187     (304

Interest income

     142        129        729        496   

Other (expense) income, net

     223        (198     (245     54   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before income taxes

     16,549        15,686        78,655        107,307   

Income tax expense

     5,220        5,258        27,143        36,737   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

   $ 11,329      $ 10,428      $ 51,512      $ 70,570   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share:

    

Basic

   $ 0.89      $ 0.81      $ 4.01      $ 5.50   

Diluted

   $ 0.89      $ 0.81      $ 4.00      $ 5.47   

Shares used in computing earnings per share:

    

Basic

     12,686        12,865        12,832        12,830   

Diluted

     12,744        12,943        12,882        12,901   

Cash dividends declared per share

   $ 0.270      $ 0.130      $ 0.920      $ 0.475   


Lindsay Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(unaudited)

 

     August 31,     August 31,  

(in thousands, except par values)

   2014     2013  

ASSETS

    

Current Assets:

    

Cash and cash equivalents

   $ 171,842      $ 151,927   

Receivables, net

     94,135        120,291   

Inventories, net

     71,696        68,607   

Deferred income taxes

     17,714        12,705   

Other current assets

     18,671        15,261   
  

 

 

   

 

 

 

Total current assets

     374,058        368,791   

Property, plant and equipment, net

     72,457        65,064   

Intangible assets, net

     31,980        36,007   

Goodwill

     37,021        37,414   

Other noncurrent assets, net

     11,035        5,020   
  

 

 

   

 

 

 

Total assets

   $ 526,551      $ 512,296   
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Current Liabilities:

    

Accounts payable

   $ 42,424      $ 42,276   

Other current liabilities

     73,943        59,816   
  

 

 

   

 

 

 

Total current liabilities

     116,367        102,092   

Pension benefits liabilities

     6,600        6,324   

Deferred income taxes

     12,992        15,415   

Other noncurrent liabilities

     7,945        7,827   
  

 

 

   

 

 

 

Total liabilities

     143,904        131,658   
  

 

 

   

 

 

 

Shareholders’ equity:

    

Preferred stock

     —          —     

Common stock

     18,636        18,571   

Capital in excess of stated value

     52,866        49,764   

Retained earnings

     445,366        405,580   

Less treasury stock

     (132,020     (90,961

Accumulated other comprehensive loss, net

     (2,201     (2,316
  

 

 

   

 

 

 

Total shareholders’ equity

     382,647        380,638   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 526,551      $ 512,296   
  

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

(in thousands)

   Years Ended August 31,  
     2014     2013  

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net earnings

   $ 51,512      $ 70,570   

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

    

Depreciation and amortization

     14,793        12,600   

Provision for uncollectible accounts receivable

     2,225        1,543   

Deferred income taxes

     (8,195     (3,237

Share-based compensation expense

     4,207        4,573   

Other, net

     (465     (1,014

Changes in assets and liabilities:

    

Receivables

     24,751        (36,557

Inventories

     (2,724     (10,020

Other current assets

     (3,092     (4,054

Accounts payable

     (623     9,188   

Other current liabilities

     8,954        14,578   

Current taxes payable

     5,706        (892

Other noncurrent assets and liabilities

     (5,251     227   
  

 

 

   

 

 

 

Net cash provided by operating activities

     91,798        57,505   
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchases of property, plant and equipment

     (17,715     (11,136

Proceeds from sale of property, plant and equipment

     34        22   

Acquisition of business, net of cash acquired

     —          (29,007

Proceeds from settlement of net investment hedges

     1,245        1,944   

Payments for settlement of net investment hedges

     (2,040     (2,904
  

 

 

   

 

 

 

Net cash used in investing activities

     (18,476     (41,081
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Proceeds from exercise of stock options

     455        2,036   

Common stock withheld for payroll tax withholdings

     (2,027     (2,441

Principal payments on long-term debt

     —          (4,285

Excess tax benefits from share-based compensation

     762        2,800   

Repurchase of common shares

     (41,059     —     

Dividends paid

     (11,726     (6,105
  

 

 

   

 

 

 

Net cash used in financing activities

     (53,595     (7,995
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     188        54   
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     19,915        8,483   

Cash and cash equivalents, beginning of period

     151,927        143,444   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 171,842      $ 151,927