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8-K - 8-K - LINDSAY CORPd268282d8k.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:

Brian Ketcham

Vice President & Chief Financial Officer

402-827-6579

 

HALLIBURTON INVESTOR RELATIONS:

Hala Elsherbini or Geralyn DeBusk

972-458-8000

Lindsay Corporation Reports Fiscal 2016 Fourth Quarter and Full Year Results

•    Total fourth quarter revenues increase 8% over prior year to $132.9 million

•    Fourth quarter Infrastructure revenues increase 24%

•    Gross margin for the quarter expands to 30.1%

OMAHA, Neb., October 13, 2016—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its fourth quarter ended August 31, 2016.

Fourth Quarter Results

Fourth quarter fiscal 2016 revenues were $132.9 million compared to revenues of $123.5 million in the prior year’s fourth quarter. Net earnings for the quarter were $7.8 million or $0.73 per diluted share compared with a net loss of $3.2 million or $0.28 per diluted share in the prior year.

Irrigation segment revenues for the quarter were $99.9 million, a 3 percent increase from $96.9 million in the prior year’s fourth quarter. U.S. irrigation revenues of $57.3 million increased 5 percent, reflecting an increase in irrigation system unit volume with comparable pricing to prior year, along with a modest increase in other irrigation component revenues. International irrigation revenues for the fourth quarter were $42.6 million, an increase of 1 percent over the same quarter last year, including a negative currency translation impact of 2 percent. Increased sales in certain international project-oriented markets were offset by declines in Brazil and other markets. Infrastructure segment revenues increased 24 percent to $33.0 million for the quarter due to an increase in Road Zipper System sales as well as higher unit volumes in road safety products.

Gross margin expanded to 30.1 percent of sales compared to 27.1 percent of sales in the prior year’s fourth quarter, due to improved margin in the infrastructure segment while irrigation segment margin was consistent with prior year. Strong infrastructure margin resulted from an increase in higher-margin Road Zipper System sales as well as improved product mix and volume leverage from road safety product sales.

Operating expenses decreased $2.7 million to $28.0 million compared to the fourth quarter of the prior fiscal year. The decrease resulted primarily from a $5.0 million bad debt charge in the prior year, offset by increased selling and new product development costs in the current year. Operating expenses were 21.0 percent of sales in the fourth quarter of fiscal 2016 compared with 24.8 percent of sales in the prior year period. Operating margins were 9.0 percent in the fourth quarter compared to 2.2 percent in the prior year period.

Cash and cash equivalents of $101.2 million at the end of the quarter were $37.9 million lower than the end of the prior fiscal year. The Company repurchased 688,790 shares for $48.3 million during fiscal 2016. There is $63.7 million that remains available under the Company’s share repurchase program.

The backlog of unshipped orders at August 31, 2016 was $50.7 million compared with $48.0 million at August 31, 2015.

Full Year Results

Total revenues for the year ended August 31, 2016 were $516.4 million, a decrease of 8 percent compared to $560.2 million in the same prior year period. Foreign currency translation as compared to the prior year reduced fiscal 2016 revenues by 3 percent. Net earnings were $20.3 million or $1.85 per diluted share compared with $26.3 million or $2.22 per diluted share in the prior year. The current year includes $13.0 million of environmental expenses which, on an after tax basis, reduced net earnings by $8.5 million, or $0.78 per diluted share.


Total irrigation segment revenues decreased 7 percent to $421.6 million from $451.2 million during the prior fiscal year. U.S. irrigation revenues of $262.2 million reflected a decline of 4 percent, while international irrigation revenues of $159.4 million reflected a decline of 10 percent, including a negative currency translation impact of 7 percent. Infrastructure segment revenues decreased 13 percent to $94.8 million, due primarily to the completion of the large Golden Gate Bridge project in the prior year. Increased Road Zipper System lease revenue and road safety product sales were offset by declines in tubing, rail and contract manufacturing revenue.

Outlook

Rick Parod, president and chief executive officer, commented, “We ended our fiscal year with improved fourth quarter performance in both Irrigation and Infrastructure. The irrigation market remains challenging as lower commodity prices and farm income continue to restrain demand for our irrigation products. In spite of these market conditions we have been able to improve gross margin levels and deliver solid operating income for the year. The Infrastructure segment continues to perform well as market activity reflects improving demand.”

Parod continued, “Estimated record production for both corn and soybeans from the fall harvest in the U.S. will continue downward pressure on commodity prices. Accordingly, we are not expecting any meaningful improvement in the overall irrigation market in fiscal 2017 and will continue to manage our cost structure while investing in productivity improvement and selected growth initiatives. The longer term drivers for our markets of population growth, expanded food production and efficient water use, and infrastructure upgrades and expansion support our expectations for growth.”

Fourth-Quarter Conference Call

Lindsay’s fiscal 2016 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 # 88075624. 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, 2016 Lindsay had approximately 10.6 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.

 

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Lindsay Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

     Three months ended August 31,     Years ended August 31,  

(in thousands, except per share amounts)

   2016     2015     2016     2015  

Operating revenues

   $ 132,897     $ 123,540     $ 516,411     $ 560,181  

Cost of operating revenues

     92,951       90,075       367,798       403,860  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     39,946       33,465       148,613       156,321  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Selling expense

     11,012       10,186       41,973       40,516  

General and administrative expense

     12,494       16,991       56,419       52,261  

Engineering and research expense

     4,444       3,519       15,846       12,849  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     27,950       30,696       114,238       105,626  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     11,996       2,769       34,375       50,695  

Interest expense

     (1,175     (1,202     (4,751     (2,626

Interest income

     125       163       645       631  

Other (expense) income, net

     74       (1,201     (981     (1,949
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before income taxes

     11,020       529       29,288       46,751  

Income tax expense

     3,212       3,710       9,021       20,442  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings (loss)

   $ 7,808     $ (3,181   $ 20,267     $ 26,309  
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings (loss) per share:

        

Basic

   $ 0.73     $ (0.28   $ 1.86     $ 2.23  

Diluted

   $ 0.73     $ (0.28   $ 1.85     $ 2.22  

Shares used in computing earnings per share:

        

Basic

     10,709       11,378       10,906       11,818  

Diluted

     10,740       11,418       10,930       11,855  

Cash dividends declared per share

   $ 0.290     $ 0.280     $ 1.130     $ 1.090  

 

3


Lindsay Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(unaudited)

 

(in thousands, except par values)

   August 31,
2016
    August 31,
2015
 

ASSETS

    

Current Assets:

    

Cash and cash equivalents

   $ 101,246     $ 139,093  

Restricted cash

     2,030       2,026  

Receivables, net

     80,610       74,063  

Inventories, net

     74,750       74,930  

Deferred income taxes

     15,349       15,807  

Prepaid expenses

     3,671       5,197  

Other current assets

     14,468       11,051  
  

 

 

   

 

 

 

Total current assets

     292,124       322,167  

Property, plant and equipment, net

     77,627       78,656  

Intangible assets, net

     47,200       51,920  

Goodwill

     76,803       76,801  

Other noncurrent assets

     5,811       6,924  
  

 

 

   

 

 

 

Total assets

   $ 499,565     $ 536,468  
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Current Liabilities:

    

Accounts payable

   $ 32,268     $ 38,814  

Current portion of long-term debt

     197       193  

Other current liabilities

     55,405       56,105  
  

 

 

   

 

 

 

Total current liabilities

     87,870       95,112  

Pension benefits liabilities

     6,869       6,569  

Long-term debt

     116,976       117,173  

Deferred income taxes

     13,263       18,971  

Other noncurrent liabilities

     23,020       10,083  
  

 

 

   

 

 

 

Total liabilities

     247,998       247,908  
  

 

 

   

 

 

 

Shareholders’ equity:

    

Preferred stock

     —          —     

Common stock

     18,713       18,684  

Capital in excess of stated value

     57,338       55,184  

Retained earnings

     466,926       458,903  

Less treasury stock

     (277,238     (228,903

Accumulated other comprehensive loss, net

     (14,172     (15,308
  

 

 

   

 

 

 

Total shareholders’ equity

     251,567       288,560  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 499,565     $ 536,468  
  

 

 

   

 

 

 

 

4


Lindsay Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

     Years Ended August 31,  

(in thousands)

   2016     2015  

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net earnings

   $ 20,267     $ 26,309  

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

    

Depreciation and amortization

     16,881       16,412  

Asset write-down

     —          270  

Provision for uncollectible accounts receivable

     (843     5,840  

Deferred income taxes

     (5,755     278  

Share-based compensation expense

     3,060       3,332  

Other, net

     89        4,665  

Changes in assets and liabilities:

    

Receivables

     (4,730     10,902  

Inventories

     1,330       915  

Other current assets

     (1,047     (3,984

Accounts payable

     (7,101     (337

Other current liabilities

     (283     (9,467

Current taxes payable

     (813     (8,011

Other noncurrent assets and liabilities

     12,017       1,558  
  

 

 

   

 

 

 

Net cash provided by operating activities

     33,072       48,682  
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchases of property, plant and equipment

     (11,496     (15,244

Acquisition of business, net of cash acquired

     —          (69,521

Proceeds from settlement of net investment hedges

     3,381       7,473  

Payments for settlement of net investment hedges

     (2,924     (1,202

Other investing activities, net

     1,141       (1,091
  

 

 

   

 

 

 

Net cash used in investing activities

     (9,898     (79,585
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Proceeds from exercise of stock options

     113       394  

Common stock withheld for payroll tax withholdings

     (712     (1,706

Proceeds from issuance of long-term debt

     —          115,000  

Principal payments on long-term debt

     (193     (112

Issuance costs related to debt

     —          (620

Excess tax benefits from share-based compensation

     53       611  

Repurchase of common shares

     (48,335     (96,883

Dividends paid

     (12,244     (12,772
  

 

 

   

 

 

 

Net cash provided by (used) in financing activities

     (61,318     3,912  
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     297       (5,758
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (37,847     (32,749

Cash and cash equivalents, beginning of period

     139,093       171,842  
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 101,246     $ 139,093  
  

 

 

   

 

 

 

 

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