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8-K - 8-K - LINDSAY CORPlnn-20171012x8k.htm

Exhibit 99.1

LINY_Corp_RGB2222  NO. 111TH ST. OMAHA, NE 68164 TEL: 402-829-6800 FAX: 402-829-6836 



For further information, contact:





 

 

 

LINDSAY CORPORATION:

 

HALLIBURTON INVESTOR RELATIONS:

Brian Ketcham

 

Hala Elsherbini or Geralyn DeBusk

Vice President & Chief Financial Officer

 

972-458-8000

402-827-6579

 

 

 



Lindsay Corporation Reports Fiscal 2017 Fourth Quarter and Full Year Results



·

Irrigation segment revenue and operating income improve over the prior year fourth quarter

·

Infrastructure segment delivers solid performance for the fourth quarter and full year





OMAHA, Neb., October 12, 2017—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its fourth quarter and fiscal year ended August 31, 2017.



Fourth Quarter Results



Fourth quarter fiscal 2017 revenues were $131.9 million compared to revenues of $132.9 million in the prior year’s fourth quarter.  Net earnings for the quarter were $6.3 million or $0.59 per diluted share compared with net earnings of $7.8 million or $0.73 per diluted share in the fourth quarter of the prior year.  A higher effective income tax rate for the quarter decreased net earnings $1.1 million, or $0.10 per diluted share, compared to the same prior year period.



Irrigation segment revenues for the fourth quarter were $101.9 million, an increase of two percent compared to $99.9 million in the prior year’s fourth quarter.  U.S. irrigation revenues were $55.6 million, a three percent decrease from the fourth quarter of the prior year, driven primarily by lower filtration and pump system revenues.  Mechanized irrigation equipment revenues increased in the quarter on higher average selling prices and higher unit sales volume.  International irrigation revenues were $46.3 million, an increase of nine percent compared to the fourth quarter of the prior year, driven by the continued market recovery in Brazil, increased project activity in developing markets, and a slightly favorable currency translation impact.  Infrastructure segment revenues for the fourth quarter were $30.0 million, a decrease of nine percent over the prior year’s fourth quarter.  Higher Road Zipper® system lease revenue and higher sales of road safety products in international markets were more than offset by lower Road Zipper® system project sales and lower sales of U.S. road safety products.



Gross margin for the fourth quarter of fiscal 2017 was 28.6 percent of sales compared to 30.1 percent of sales in the prior year’s fourth quarter.  Margins were slightly lower in both the irrigation and infrastructure segments.  Irrigation margins were impacted by a higher mix of revenue from international markets, where gross margins are typically lower.  Infrastructure margins were lower in comparison to a strong fourth quarter in the prior year.   



Operating expenses for the fourth quarter of fiscal 2017 were $26.3 million, a decrease of $1.7 million compared to the fourth quarter in the prior year.  The decrease resulted from lower selling and administrative expenses while engineering and development costs remained stable, although at elevated levels due to ongoing testing required to qualify road safety products under new U.S. government testing standards.  Operating expenses were 19.9 percent of sales in the fourth quarter of fiscal 2017 compared with 21.0 percent of sales in the fourth quarter of the prior year. 



Operating income for the fourth quarter of 2017 was $11.5 million, a decrease of four percent compared to $12.0 million in the fourth quarter of the prior year.  Irrigation segment operating income increased on higher revenue and lower operating expenses while infrastructure segment operating income decreased on lower revenue and lower gross margin.  Operating margin was 8.7 percent in the fourth quarter of 2017 compared to 9.0 percent in the prior year fourth quarter.



Cash and cash equivalents at the end of the fourth quarter were $121.6 million compared to $101.2 million at the end of the prior fiscal year.  There were no share repurchases made during the fourth quarter of fiscal 2017.  A total of $63.7 million remains available under the Company’s share repurchase program as of August 31, 2017.

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The backlog of unshipped orders at August 31, 2017 was $51.8 million compared with $50.7 million at August 31, 2016.  Higher order backlog in the irrigation segment was partially offset by lower order backlog in the infrastructure segment compared to the end of the prior fiscal year.



Full Year Results



Total revenues for the year ended August 31, 2017 were $518.0 million, a slight increase compared to $516.4 million in the same prior year period.  Net earnings were $23.2 million or $2.17 per diluted share compared with $20.3 million or $1.85 per diluted share in the same prior year period.  A higher effective income tax rate in fiscal 2017 decreased net earnings $1.5 million, or $0.14 per diluted share, compared to the same prior year period.



Irrigation segment revenues of $418.0 million for the year ended August 31, 2017 decreased one percent from $421.6 million in the same prior year period.  U.S. irrigation revenues of $242.6 million decreased seven percent while international irrigation revenues of $175.4 million increased 10 percent.  Infrastructure segment revenues increased five percent to $99.9 million for the year ended August 31, 2017 compared to the same prior year period.



Outlook



Rick Parod, President and Chief Executive Officer, commented, “U.S. irrigation equipment revenues were improved for a second consecutive quarter, a further indication that we may have reached a level of stabilization in the domestic market.  The market recovery in Brazil and increased project activity in developing markets continue to drive growth in international irrigation.”  



Parod continued, “Commodity prices have stabilized, but are expected to remain under pressure as generally favorable weather conditions during the 2017 growing season are expected to result in above average crop production levels and ending stocks.  The latest USDA estimate of net farm income for 2017 is projected to be 3% higher than last year, following three years of significant decline.  Grower sentiment in the U.S. is showing signs of improvement and we expect modest growth in our U.S. irrigation business in the upcoming year.  We also expect continued growth in international irrigation markets.  In our infrastructure business, we expect continued global growth in Road Zipper system sales and leasing as well as our road safety products.  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 2017 fourth quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today.  Interested investors may participate in the call by dialing (877) 317-6789 in the U.S., or (412) 317-6789 internationally, and requesting the Lindsay Corporation call.  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, 2017, Lindsay had approximately 10.7 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 EARNINGS

(unaudited)



 

 

 

 

 

 

 

 

 



 

Three months ended August 31,

 

Years ended August 31,

(in thousands, except per share amounts)

 

2017

 

2016

 

2017

 

2016



 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

131,937 

 

$

132,897 

 

$

517,985 

 

$

516,411 

Cost of operating revenues

 

 

94,146 

 

 

92,951 

 

 

372,973 

 

 

367,798 

Gross profit

 

 

37,791 

 

 

39,946 

 

 

145,012 

 

 

148,613 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 Selling expense

 

 

10,140 

 

 

11,012 

 

 

40,705 

 

 

41,973 

 General and administrative expense

 

 

11,681 

 

 

12,494 

 

 

46,959 

 

 

56,419 

 Engineering and research expense

 

 

4,440 

 

 

4,444 

 

 

17,147 

 

 

15,846 

Total operating expenses

 

 

26,261 

 

 

27,950 

 

 

104,811 

 

 

114,238 



 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

11,530 

 

 

11,996 

 

 

40,201 

 

 

34,375 



 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,191)

 

 

(1,175)

 

 

(4,757)

 

 

(4,751)

Interest income

 

 

297 

 

 

125 

 

 

1,178 

 

 

645 

Other (expense) income, net

 

 

(89)

 

 

74 

 

 

(907)

 

 

(981)



 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

10,547 

 

 

11,020 

 

 

35,715 

 

 

29,288 



 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

   

 

4,205 

 

 

3,212 

 

 

12,536 

 

 

9,021 



 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

6,342 

 

$

7,808 

 

$

23,179 

 

$

20,267 



 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

    Basic

 

$

0.59 

 

$

0.73 

 

$

2.17 

 

$

1.86 

    Diluted

 

$

0.59 

 

$

0.73 

 

$

2.17 

 

$

1.85 



 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

    Basic

 

 

10,692 

 

 

10,709 

 

 

10,666 

 

 

10,906 

    Diluted

 

 

10,729 

 

 

10,740 

 

 

10,694 

 

 

10,930 



 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per share

 

$

0.30 

 

$

0.29 

 

$

1.17 

 

$

1.13 







 

 

 

 

 

 

 

 

 

 

 

 









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Lindsay Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(unaudited)



 

 

 

 

 

 



 

August 31,

 

August 31,

(in thousands, except par values)

 

2017

 

2016

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 Cash and cash equivalents

 

$

121,620 

 

$

101,246 

 Restricted cash

 

 

 -

 

 

2,030 

 Receivables, net

 

 

73,850 

 

 

80,610 

 Inventories, net

 

 

86,155 

 

 

74,750 

 Prepaid expenses

 

 

4,384 

 

 

3,671 

 Other current assets

 

 

6,925 

 

 

14,468 

 Total current assets

 

 

292,934 

 

 

276,775 



 

 

 

 

 

 

Property, plant and equipment, net

 

 

74,498 

 

 

77,627 

Intangible assets, net

 

 

42,808 

 

 

47,200 

Goodwill

 

 

77,131 

 

 

76,803 

Deferred income tax assets

 

 

5,311 

 

 

4,225 

Other noncurrent assets

 

 

13,350 

 

 

4,885 

Total assets

 

$

506,032 

 

$

487,515 



 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 Accounts payable

 

$

36,717 

 

$

32,268 

 Current portion of long-term debt

 

 

201 

 

 

197 

 Other current liabilities

 

 

55,119 

 

 

55,395 

 Total current liabilities

 

 

92,037 

 

 

87,860 



 

 

 

 

 

 

Pension benefits liabilities

 

 

6,295 

 

 

6,869 

Long-term debt

 

 

116,775 

 

 

116,976 

Deferred income taxes

 

 

1,191 

 

 

1,223 

Other noncurrent liabilities

 

 

19,679 

 

 

23,020 

Total liabilities

 

 

235,977 

 

 

235,948 



 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

   Preferred stock

 

 

 -

 

 

 -

   Common stock

 

 

18,780 

 

 

18,713 

   Capital in excess of stated value

 

 

63,006 

 

 

57,338 

   Retained earnings

 

 

477,615 

 

 

466,926 

   Less treasury stock

 

 

(277,238)

 

 

(277,238)

   Accumulated other comprehensive loss, net

 

 

(12,108)

 

 

(14,172)

Total shareholders' equity

 

 

270,055 

 

 

251,567 

Total liabilities and shareholders' equity

 

$

506,032 

 

$

487,515 







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Lindsay Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)



 

 

 

 

 

 

(in thousands)

 

Years Ended August 31,



 

2017

 

2016

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

  Net earnings

 

$

23,179 

 

$

20,267 

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

 

 

 

 

 

 

     Depreciation and amortization

 

 

16,678 

 

 

16,881 

     Provision for uncollectible accounts receivable

 

 

(574)

 

 

(843)

     Deferred income taxes

 

 

(903)

 

 

(5,755)

     Share-based compensation expense

 

 

3,598 

 

 

3,060 

     Other, net

 

 

626 

 

 

89 

  Changes in assets and liabilities:

 

 

 

 

 

 

     Receivables

 

 

7,959 

 

 

(4,730)

     Inventories

 

 

(10,092)

 

 

1,330 

     Other current assets

 

 

4,581 

 

 

(1,047)

     Accounts payable

 

 

4,076 

 

 

(7,101)

     Other current liabilities

 

 

(717)

 

 

(230)

     Current taxes payable

 

 

(3,104)

 

 

(813)

     Other noncurrent assets and liabilities

   

 

(5,858)

 

 

12,017 

  Net cash provided by operating activities

 

 

39,449 

 

 

33,125 



 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

  Purchases of property, plant and equipment

 

 

(8,863)

 

 

(11,496)

  Proceeds from settlement of net investment hedges

 

 

2,117 

 

 

3,381 

  Payments for settlement of net investment hedges

 

 

(3,466)

 

 

(2,924)

  Other investing activities, net

 

 

233 

 

 

1,141 

  Net cash used in investing activities

 

 

(9,979)

 

 

(9,898)



 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

  Proceeds from exercise of stock options

 

 

3,020 

 

 

113 

  Common stock withheld for payroll tax obligations

 

 

(635)

 

 

(712)

  Principal payments on long-term debt

 

 

(197)

 

 

(193)

  Repurchase of common shares

 

 

 -

 

 

(48,335)

  Dividends paid

 

 

(12,490)

 

 

(12,244)

  Net cash used in financing activities

 

 

(10,302)

 

 

(61,371)

 

 

 

 

 

 

 

  Effect of exchange rate changes on cash and cash equivalents

 

 

1,206 

 

 

297 

  Net change in cash and cash equivalents

 

 

20,374 

 

 

(37,847)

  Cash and cash equivalents, beginning of period

 

 

101,246 

 

 

139,093 

  Cash and cash equivalents, end of period

 

$

121,620 

 

$

101,246 









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