Lindsay Corporation Reports Fiscal 2013 Second Quarter Results

OMAHA, Neb.--(BUSINESS WIRE)-- Lindsay Corporation (NYS: LNN) , a leading provider of irrigation systems and infrastructure products, today announced results for its second quarter ended February 28, 2013.

Second Quarter Results


Second quarter fiscal 2013 revenues were a record $175.5 million, increasing 33 percent from $132.1 million in the same prior year period. Net earnings were $19.4 million or $1.50 per diluted share compared with $12.8 million or $1.00 per diluted share in the prior year.

Total irrigation equipment revenues increased 39 percent to $162.6 million from $117.0 million in the prior fiscal year's second quarter. Domestic irrigation revenues of $117.1 million increased 41 percent, while international irrigation revenues of $45.5 million increased 34 percent due to increased demand resulting from higher commodity prices and farm incomes along with drought conditions in the United States. Infrastructure revenues decreased 15 percent to $12.9 million.

Gross margin was 28.7 percent compared to 27.6 percent in the prior year's second quarter. The increase is primarily due to an increase in irrigation gross margins of approximately 1 percentage point due to a strong pricing environment combined with increased productivity and cost leverage.

Operating expenses were $20.9 million compared to $17.5 million in the prior fiscal year. Current year expenses included higher personnel related expenses and increases in advertising and research and development expenses. Operating expenses were 11.9 percent of sales in the second quarter of fiscal 2013 compared with 13.3 percent of sales in the prior year period. Operating margins of 16.8 percent increased from 14.3 percent in the prior year period.

Cash and cash equivalents of $159.6 million were $54.6 million higher compared to the end of the second quarter last year, while debt decreased $4.3 million.

Backlog of unshipped orders at February 28, 2013 was $159.3 million compared with $87.3 million at February 29, 2012 and $85.1 million at November 30, 2012. Current year backlog includes strong domestic irrigation volume along with a $39.1 million contract in the Middle East consisting of irrigation machines and ancillary equipment that will be shipped and delivered primarily over the balance of fiscal 2013.

Six Month Results

Total revenues for the six months ended February 28, 2013 were $322.9 million, a 28 percent increase from $251.3 million in the same prior year period. Net earnings were $34.1 million or $2.65 per diluted share compared with $15.7 million or $1.23 per diluted share in the prior year. Fiscal 2012 operating costs included $7.2 million of accrued expenses, or $0.37 per diluted share on an after tax basis, relating to an estimated increase in the Company's liability for environmental remediation at its Lindsay, Nebraska facility.

Total irrigation equipment revenues increased 36 percent to $296.9 million from $217.7 million during the first six months of the prior fiscal year. Domestic irrigation revenues of $213.6 million increased 49 percent, while international irrigation revenues of $83.3 million increased 12 percent due to sales increases in South America and Russia. Infrastructure revenues decreased 23 percent to $26.0 million.

Outlook

Rick Parod, president and chief executive officer, commented, "Record backlog at the end of the quarter resulted from continued robust irrigation order volumes in the second quarter along with the award of a large irrigation project in the Middle East. While contracts of this type generally generate below average gross margins, the award demonstrates the success that we are having in developing Lindsay Corporation's position around the world."

Parod added, "Positive farmer sentiment along with historically high farm incomes and commodity prices provide a solid backdrop for strong irrigation sales. However, expectations of record crop planting and improved yields are leading to projections of lower commodity prices, which could lead to reduced demand over the balance of 2013 and into 2014. The environment for infrastructure sales remains difficult, so we are focused on operating efficiencies and expense controls to position the segment for improved profitability as the market strengthens."

Parod continued, "Overall the long-term drivers for the company of population growth, expanded food production, efficient water use, and improved transportation infrastructure remain positive."

Second-Quarter Conference Call

Lindsay's fiscal 2013 second 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 domestically, or (706) 758-0065 internationally, and referring to conference ID # 21726133. 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 end of the third quarter of fiscal 2013. 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 through its wholly owned subsidiaries, Lindsay Transportation Solutions and Snoline S.P.A. At February 28, 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 Lindsay'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 Six months ended
February 28, February 29, February 28, February 29,
($ and shares in thousands, except per share amounts) 2013 2012 2013 2012
 
Operating revenues $ 175,539 $ 132,134 $ 322,909 $ 251,339
Cost of operating revenues   125,175     95,640     229,688     184,597  
Gross profit   50,364     36,494     93,221     66,742  
 
Operating expenses:
Selling expense 8,000 6,868 15,321 13,812
General and administrative expense 10,155 8,434 20,273 17,374
Engineering and research expense 2,763 2,244 5,917 4,300
Environmental remediation expense   -     -     -     7,225  
Total operating expenses   20,918     17,546     41,511     42,711  
 
Operating income 29,446 18,948 51,710 24,031
 
Other income (expense):
Interest expense (83 ) (130 ) (226 ) (273 )
Interest income 129 94 267 190
Other income (expense), net   (4 )   515     120     (80 )
 
Earnings before income taxes 29,488 19,427 51,871 23,868
 
Income tax expense   10,137     6,653     17,792     8,173  
 
Net earnings $ 19,351   $ 12,774   $ 34,079   $ 15,695  
 
Earnings per share:
Basic $ 1.51 $ 1.01 $ 2.66 $ 1.24
Diluted $ 1.50 $ 1.00 $ 2.65 $ 1.23
 
Shares used in computing earnings per share:
Basic 12,842 12,703 12,799 12,692
Diluted 12,882 12,821 12,867 12,792
 
Cash dividends declared per share $ 0.115 $ 0.090 $ 0.230 $ 0.180
 
 
 
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
  Three months ended   Six months ended
February 28,   February 29, February 28,   February 29,
($ in thousands) 2013 2012 2013 2012
 
Net earnings $19,351   $12,774 $34,079   $15,695  
Other comprehensive income (loss):
Defined benefit pension plan adjustment, net of tax 33 25 66 51
Unrealized (loss) gain on cash flow hedges, net of tax (35 ) 48 (9 ) 120
Foreign currency translation adjustment, net of
hedging activities and tax 1,148   1,344 1,107   (2,787 )
Total other comprehensive income (loss), net of tax
expense (benefit) of $275, $216, ($118) and $355 1,146   1,417 1,164   (2,616 )
Total comprehensive income $20,497   $14,191 $35,243   $13,079  
 
 
 
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
     
February 28, February 29, August 31,
($ and shares in thousands, except par values) 2013 2012 2012
 
ASSETS
Current Assets:
Cash and cash equivalents $ 159,583 $ 104,953 $ 143,444
Receivables, net of allowance of $1,915, $2,002 and $1,717 105,399 77,536 82,565
Inventories, net 78,071 68,578 52,873
Deferred income taxes 9,110 8,336 9,505
Other current assets   15,020     14,193     10,478  
Total current assets   367,183     273,596     298,865  
 
Property, Plant and Equipment:
Cost 141,973 134,413 136,695
Less accumulated depreciation   (85,104 )   (77,177 )   (80,515 )
Property, plant and equipment, net   56,869     57,236     56,180  
 
Intangibles, net 23,729 26,839 25,070
Goodwill 30,211 30,443 29,961
Other noncurrent assets   4,490     5,486     5,455  
Total assets $ 482,482   $ 393,600   $ 415,531  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 63,651 $ 39,417 $ 31,372
Current portion of long-term debt 2,143 4,286 4,285
Other current liabilities   45,724     33,428     44,781  
Total current liabilities   111,518     77,131     80,438  
 
Pension benefits liabilities 6,676 6,115 6,821
Long-term debt - 2,143 -
Deferred income taxes 9,716 11,678 9,984
Other noncurrent liabilities   7,415     8,362     7,450  
Total liabilities   135,325     105,429     104,693  
 
Shareholders' Equity:
Preferred stock of $1 par value-
Authorized 2,000 shares; none issued - - -
Common stock of $1 par value-
Authorized 25,000 shares; 18,553 issued 18,553 18,409 18,421
Capital in excess of stated value 47,036 40,736 43,140
Retained earnings 372,242 316,141 341,115
Less treasury stock (at cost, 5,698 shares) (90,961 ) (90,961 ) (90,961 )
Accumulated other comprehensive income (loss), net   287  

Increase your money and finance knowledge from home

Basics of Diversification

Learn one of the fundamental concepts of building a portfolio.

View Course »

What are Penny Stocks

The lucrative and dangerous world of penny stocks.

View Course »

Add a Comment

*0 / 3000 Character Maximum