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8-K - 8-K - LINDSAY CORPd846345d8k.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 2015 First Quarter Results

OMAHA, Neb., January 6, 2015—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its first quarter ended November 30, 2014.

First Quarter Results

First quarter fiscal 2015 revenues were $134.8 million versus $147.7 million of revenues in the same prior year period. Net earnings were $7.6 million or $0.62 per diluted share compared with $10.2 million or $0.79 per diluted share in the prior year.

Total irrigation equipment revenues decreased 11 percent to $114.7 million from $129.2 million in the prior fiscal year’s first quarter. U.S. irrigation revenues of $62.7 million decreased 21 percent due to a 27 percent decline in the number of irrigation systems sold as a result of the reduction in commodity prices, offset by sales increases in pumping stations and filtration solutions. International irrigation revenues of $52.0 million increased 4 percent most notably in the Middle East, South Africa and Australia. Infrastructure revenues increased 9 percent to $20.1 million with the primary increase in the road safety product line.

Gross margin was 27.4 percent of sales compared to 27.2 percent of sales in the prior year’s first quarter. Gross margin in irrigation decreased by approximately 1 percentage point and infrastructure gross margin increased by approximately 6 percentage points. Excluding the impact of a higher than normal warranty charge in the prior year, irrigation gross margin decreased by approximately 2.5 percentage points primarily as a result of pricing pressure and increases in input costs. The increase in infrastructure gross margin was primarily due to sales mix and increased leverage on higher sales.

Operating expenses increased $0.8 million to $25.0 million compared to the first quarter of the prior fiscal year. Expenses that support regular operating activities decreased by approximately $1.3 million due to reductions in personnel expenses including incentive compensation, outside services and fees associated with the Iraq contract, offset by a $1.5 million increase in estimated environmental expenses and $0.6 million of expenses associated with the planned acquisition of Elecsys Corporation. The environmental and acquisition expenses reduced earnings by $0.11 per diluted share on an after tax basis. Operating expenses were 18.5 percent of sales in the first quarter of fiscal 2015 compared with 16.4 percent of sales in the prior year period. Operating margins were 8.8 percent in the first quarter, versus 10.8 percent in the prior year period.

Cash and cash equivalents of $139.3 million were $12.5 million lower compared to the prior year first quarter. The Company repurchased 381,619 shares for $30.0 million during the first quarter and a total of 879,518 shares for $71.1 million since the inception of the program in January 2014. In addition, the Company expects to raise $100 million through a placement of long term debt over the next several months.

Backlog of unshipped orders at November 30, 2014 was $68.3 million compared with $86.6 million at November 30, 2013 and $79.6 million at August 31, 2014. The current and prior 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.

 


Outlook

Rick Parod, president and chief executive officer, commented, “The U.S. irrigation market contraction continued in the quarter as lower commodity prices, uncertainty surrounding renewal of tax incentives, and lower farm incomes affected farmers’ sentiment regarding equipment purchases. We expect the current market challenges in agriculture to continue into calendar 2015. On the positive side, our infrastructure business has continued to improve at both the top and bottom line as we develop our sales pipeline and improve our margin structure.”

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 addition we expect the pending acquisition of Elecsys Corporation will help us build on our leadership position in implementing technology to improve water use efficiency.”

First-Quarter Conference Call

Lindsay’s fiscal 2015 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 # 59043217. 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, 2014 Lindsay had approximately 12.1 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 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 OPERATIONS

(Unaudited)

 

     Three months ended  
     November 30,     November 30,  

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

   2014     2013  

Operating revenues

   $ 134,845      $ 147,671   

Cost of operating revenues

     97,931        107,520   
  

 

 

   

 

 

 

Gross profit

     36,914        40,151   
  

 

 

   

 

 

 

Operating expenses:

    

Selling expense

     9,417        9,756   

General and administrative expense

     12,871        11,743   

Engineering and research expense

     2,724        2,660   
  

 

 

   

 

 

 

Total operating expenses

     25,012        24,159   
  

 

 

   

 

 

 

Operating income

     11,902        15,992   

Other income (expense):

    

Interest expense

     (71     (39

Interest income

     172        135   

Other expense, net

     (342     (271
  

 

 

   

 

 

 

Earnings before income taxes

     11,661        15,817   

Income tax expense

     4,093        5,583   
  

 

 

   

 

 

 

Net earnings

   $ 7,568      $ 10,234   
  

 

 

   

 

 

 

Earnings per share:

    

Basic

   $ 0.62      $ 0.79   

Diluted

   $ 0.62      $ 0.79   

Shares used in computing earnings per share:

    

Basic

     12,224        12,889   

Diluted

     12,274        12,951   

Cash dividends declared per share

   $ 0.270      $ 0.130   


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

     November 30,     November 30,     August 31,  

($ in thousands)

   2014     2013     2014  

ASSETS

      

Current Assets:

      

Cash and cash equivalents

   $ 139,287      $ 151,803      $ 171,842   

Receivables, net

     89,165        122,093        94,135   

Inventories, net

     77,010        75,614        71,696   

Deferred income taxes

     17,107        13,469        17,714   

Other current assets

     18,853        15,989        18,671   
  

 

 

   

 

 

   

 

 

 

Total current assets

     341,422        378,968        374,058   
  

 

 

   

 

 

   

 

 

 

Property, plant and equipment, net

     70,901        65,252        72,457   

Intangibles, net

     30,821        35,029        31,980   

Goodwill

     36,634        37,193        37,021   

Other noncurrent assets, net

     10,299        5,261        11,035   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 490,077      $ 521,703      $ 526,551   
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current Liabilities:

      

Accounts payable

   $ 48,648      $ 45,902      $ 42,424   

Other current liabilities

     60,972        57,132        73,943   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     109,620        103,034        116,367   
  

 

 

   

 

 

   

 

 

 

Pension benefits liabilities

     6,530        6,263        6,600   

Deferred income taxes

     11,903        14,715        12,992   

Other noncurrent liabilities

     9,190        8,022        7,945   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     137,243        132,034        143,904   
  

 

 

   

 

 

   

 

 

 

Shareholders’ Equity:

      

Preferred stock

     —          —          —     

Common stock

     18,674        18,620        18,636   

Capital in excess of stated value

     52,650        49,288        52,866   

Retained earnings

     449,658        414,133        445,366   

Less treasury stock

     (162,006     (90,961     (132,020

Accumulated other comprehensive loss, net

     (6,142     (1,411     (2,201
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     352,834        389,669        382,647   
  

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 490,077      $ 521,703      $ 526,551   
  

 

 

   

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Three months ended  
     November 30,     November 30,  

($ in thousands)

   2014     2013  

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net earnings

   $ 7,568      $ 10,234   

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

    

Depreciation and amortization

     3,748        3,707   

Provision for uncollectible accounts receivable

     169        442   

Deferred income taxes

     (774     (1,365

Share-based compensation expense

     1,099        1,180   

Other, net

     1,368        (244

Changes in assets and liabilities:

    

Receivables

     1,792        (1,608

Inventories

     (5,347     (6,608

Other current assets

     (1,513     (431

Accounts payable

     7,300        3,356   

Other current liabilities

     (8,131     (5,986

Current income taxes payable

     (3,441     3,140   

Other noncurrent assets and liabilities

     1,857        111   
  

 

 

   

 

 

 

Net cash provided by operating activities

     5,695        5,928   
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchases of property, plant and equipment

     (3,649     (2,387

Proceeds from sale of property, plant and equipment

     —          34   

Proceeds from settlement of net investment hedges

     1,889        101   

Payments for settlement of net investment hedges

     (329     (1,035
  

 

 

   

 

 

 

Net cash used in investing activities

     (2,089     (3,287
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Common stock withheld for payroll tax withholdings

     (1,699     (2,027

Excess tax benefits from share-based compensation

     501        465   

Repurchase of common shares

     (29,986     —     

Dividends paid

     (3,276     (1,681
  

 

 

   

 

 

 

Net cash used in financing activities

     (34,460     (3,243
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (1,701     478   
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (32,555     (124

Cash and cash equivalents, beginning of period

     171,842        151,927   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 139,287      $ 151,803