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Lindsay Corporation Reports Fiscal 2022 Fourth Quarter and Full Year Results

  • Fourth quarter consolidated earnings triple to $17.9 million with EPS of $1.62
  • Fourth quarter Irrigation revenues increase on strong unit volume growth in North America
  • Fourth quarter Infrastructure revenues increase on improved Road Zipper System® sales
  • Full year consolidated results reach all-time highs of $770.7 million in revenues and EPS of $5.94

Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its fourth quarter and fiscal year, which ended on August 31, 2022.

Fourth Quarter and Full Year Summary

Revenues for the fourth quarter of fiscal 2022 were $190.2 million, an increase of $36.5 million, or 24 percent, compared to revenues of $153.6 million in the prior year fourth quarter. Net earnings for the quarter were $17.9 million, or $1.62 per diluted share, compared with net earnings of $5.8 million, or $0.53 per diluted share, for the prior year fourth quarter.

Revenues for the year ended August 31, 2022 were $770.7 million, an increase of $203.1 million, or 36 percent, compared to revenues of $567.6 million in the prior year. Net earnings for the year were $65.5 million, or $5.94 per diluted share, compared with net earnings of $42.6 million, or $3.88 per diluted share, for the prior year.

“Demand for irrigation equipment remained strong across all geographies in our fourth quarter, particularly in North America where damage to existing systems due to severe weather in the Midwest resulted in a large increase in replacement sales. In the infrastructure business, fourth quarter revenue growth was driven by an increase in Road Zipper sales as we began delivery of a large project we had been expecting in the second half of our fiscal year,” said Randy Wood, President and Chief Executive Officer. “For the full year, strong growth in our irrigation business led to record consolidated revenues of $770.7 million. We were also pleased that, through effective price management and improved operating performance, we were able to overcome the inflationary headwinds we faced earlier in the year to deliver results that met our annual operating margin objective of 12 percent.”

Fourth Quarter Segment Results

Irrigation segment revenues for the fourth quarter of fiscal 2022 were $150.5 million, an increase of $25.2 million, or 20 percent, compared to $125.3 million in the prior year fourth quarter. North America irrigation revenues of $80.1 million increased $26.5 million, or 50 percent, compared to the prior year fourth quarter. The increase in North America irrigation revenues resulted from higher unit sales volumes and higher average selling prices. Higher unit sales volumes resulted primarily from increased storm damage replacement demand compared to the prior year fourth quarter. International irrigation revenues of $70.4 million decreased $1.3 million, or 2 percent, including unfavorable effects of foreign currency translation of approximately $3.5 million compared to the prior year fourth quarter. Strong sales growth in Brazil, Europe and other markets more than offset the impact of a large project in Egypt in the prior year that did not repeat.

Irrigation segment operating income for the fourth quarter of fiscal 2022 was $24.2 million, an increase of $13.6 million, or 129 percent, compared to the prior year fourth quarter. Operating margin was 16.1 percent of sales, compared to 8.4 percent of sales in the prior year fourth quarter. Increased operating income and margin resulted from higher unit sales volumes, improved price realization and lower inflationary headwinds compared to the prior year fourth quarter.

Infrastructure segment revenues for the fourth quarter of fiscal 2022 were $39.7 million, an increase of $11.3 million, or 40 percent, compared to $28.4 million in the prior year fourth quarter. The increase resulted from higher Road Zipper System project sales, which were partially offset by lower Road Zipper System lease revenue.

Infrastructure segment operating income for the fourth quarter of fiscal 2022 was $11.5 million, an increase of $5.7 million or 97 percent compared to the prior year fourth quarter. Operating margin was 28.8 percent of sales, compared to 20.5 percent of sales in the prior year fourth quarter, which is largely due to the increase in Road Zipper System sales.

The backlog of unfilled orders at August 31, 2022 was $96.8 million compared with $149.1 million at August 31, 2021. The irrigation backlog is lower compared to the prior year while the infrastructure backlog is higher.

Outlook

“Current commodity prices and net farm income projections support a positive outlook for North America irrigation equipment demand for the fall selling season, however the ongoing impacts from inflation and supply chain challenges can also impact capital investment decisions for farmers. We expect growth in international markets through expanded production driven by positive agricultural market fundamentals and continuing concerns over food security and global grain supplies,” said Mr. Wood. “In the infrastructure business, we expect to continue delivery of the large Road Zipper System project during the first quarter of fiscal 2023, and expectations for continued growth in this business are supported by an anticipated increase in U.S. infrastructure spending and by the ongoing management of our project sales funnel.”

Fourth Quarter Conference Call

Lindsay’s fiscal 2022 fourth quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (833) 535-2202 in the U.S., or (412) 902-6745 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 Corporation (NYSE: LNN) is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. Established in 1955, the company has been at the forefront of research and development of innovative solutions to meet the food, fuel, fiber and transportation needs of the world’s rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic® center pivot and lateral move agricultural irrigation systems, FieldNET® remote irrigation management and scheduling technology, and industrial IoT solutions. Also a global leader in the transportation industry, Lindsay Transportation Solutions manufactures equipment to improve road safety and keep traffic moving on the world’s roads, bridges and tunnels, through the Barrier Systems®, Road Zipper® and Snoline™ brands. For more information about Lindsay Corporation, visit 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 EARNINGS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended August 31,

 

Years Ended August 31,

(in thousands, except per share amounts)

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

 

190,196

 

 

$

 

153,648

 

 

$

 

770,743

 

 

$

 

567,646

 

Cost of operating revenues

 

 

 

133,079

 

 

 

 

120,081

 

 

 

 

571,565

 

 

 

 

417,441

 

Gross profit

 

 

 

57,117

 

 

 

 

33,567

 

 

 

 

199,178

 

 

 

 

150,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling expense

 

 

 

9,850

 

 

 

 

8,136

 

 

 

 

33,920

 

 

 

 

30,816

 

General and administrative expense

 

 

 

14,922

 

 

 

 

12,153

 

 

 

 

55,470

 

 

 

 

51,923

 

Engineering and research expense

 

 

 

4,563

 

 

 

 

3,855

 

 

 

 

15,145

 

 

 

 

13,359

 

Total operating expenses

 

 

 

29,335

 

 

 

 

24,144

 

 

 

 

104,535

 

 

 

 

96,098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

27,782

 

 

 

 

9,423

 

 

 

 

94,643

 

 

 

 

54,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

(924

)

 

 

 

(1,167

)

 

 

 

(4,269

)

 

 

 

(4,751

)

Interest income

 

 

 

166

 

 

 

 

285

 

 

 

 

622

 

 

 

 

1,083

 

Other expense, net

 

 

 

(3,392

)

 

 

 

(752

)

 

 

 

(3,128

)

 

 

 

(53

)

Total other (expense) income

 

 

 

(4,150

)

 

 

 

(1,634

)

 

 

 

(6,775

)

 

 

 

(3,721

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

 

23,632

 

 

 

 

7,789

 

 

 

 

87,868

 

 

 

 

50,386

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

5,703

 

 

 

 

1,985

 

 

 

 

22,399

 

 

 

 

7,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

 

17,929

 

 

$

 

5,804

 

 

$

 

65,469

 

 

$

 

42,572

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

1.63

 

 

$

 

0.53

 

 

$

 

5.97

 

 

$

 

3.91

 

Diluted

 

$

 

1.62

 

 

$

 

0.53

 

 

$

 

5.94

 

 

$

 

3.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

10,980

 

 

 

 

10,907

 

 

 

 

10,965

 

 

 

 

10,886

 

Diluted

 

 

 

11,063

 

 

 

 

11,039

 

 

 

 

11,031

 

 

 

 

10,985

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per share

 

$

 

0.34

 

 

$

 

0.33

 

 

$

 

1.33

 

 

$

 

1.30

 

 
 
 
 
 

LINDSAY CORPORATION AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Twelve months ended

(in thousands)

 

August 31,

2022

 

August 31,

2021

 

August 31,

2022

 

August 31,

2021

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Irrigation:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

 

80,082

 

 

$

 

53,539

 

 

$

 

355,683

 

 

$

 

273,871

 

International

 

 

 

70,387

 

 

 

 

71,715

 

 

 

 

310,146

 

 

 

 

197,487

 

Irrigation total

 

 

 

150,469

 

 

 

 

125,254

 

 

 

 

665,829

 

 

 

 

471,358

 

Infrastructure

 

 

 

39,727

 

 

 

 

28,394

 

 

 

 

104,914

 

 

 

 

96,288

 

Total operating revenues

 

$

 

190,196

 

 

$

 

153,648

 

 

$

 

770,743

 

 

$

 

567,646

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

Irrigation

 

$

 

24,250

 

 

$

 

10,578

 

 

$

 

105,763

 

 

$

 

63,181

 

Infrastructure

 

 

 

11,459

 

 

 

 

5,810

 

 

 

 

18,328

 

 

 

 

20,174

 

Corporate

 

 

 

(7,927

)

 

 

 

(6,965

)

 

 

 

(29,448

)

 

 

 

(29,248

)

Total operating income

 

$

 

27,782

 

 

$

 

9,423

 

 

$

 

94,643

 

 

$

 

54,107

 

 

The Company manages its business activities in two reportable segments as follows:

Irrigation This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial IoT solutions.

Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment.

 
 
 
 

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

August 31,

2022

 

August 31,

2021

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

105,048

 

 

$

 

127,107

 

Marketable securities

 

 

 

11,460

 

 

 

 

19,604

 

Receivables, net of allowance of $4,118 and $3,422, respectively

 

 

 

138,200

 

 

 

 

93,609

 

Inventories, net

 

 

 

193,776

 

 

 

 

145,244

 

Other current assets

 

 

 

28,617

 

 

 

 

30,539

 

Total current assets

 

 

 

477,101

 

 

 

 

416,103

 

 

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

 

94,472

 

 

 

 

91,997

 

Intangible assets, net

 

 

 

18,208

 

 

 

 

20,367

 

Goodwill

 

 

 

67,130

 

 

 

 

67,968

 

Operating lease right-of-use assets

 

 

 

19,181

 

 

 

 

18,281

 

Deferred income tax assets

 

 

 

9,313

 

 

 

 

8,113

 

Other noncurrent assets

 

 

 

25,248

 

 

 

 

14,356

 

Total assets

 

$

 

710,653

 

 

$

 

637,185

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

 

60,036

 

 

$

 

45,209

 

Current portion of long-term debt

 

 

 

222

 

 

 

 

217

 

Other current liabilities

 

 

 

100,684

 

 

 

 

92,814

 

Total current liabilities

 

 

 

160,942

 

 

 

 

138,240

 

 

 

 

 

 

 

 

Pension benefits liabilities

 

 

 

4,892

 

 

 

 

5,754

 

Long-term debt

 

 

 

115,341

 

 

 

 

115,514

 

Operating lease liabilities

 

 

 

19,810

 

 

 

 

18,301

 

Deferred income tax liabilities

 

 

 

1,054

 

 

 

 

832

 

Other noncurrent liabilities

 

 

 

15,256

 

 

 

 

20,099

 

Total liabilities

 

 

 

317,295

 

 

 

 

298,740

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

Common stock

 

 

 

19,063

 

 

 

 

18,991

 

Capital in excess of stated value

 

 

 

94,006

 

 

 

 

86,495

 

Retained earnings

 

 

 

579,000

 

 

 

 

528,130

 

Less treasury stock - at cost

 

 

 

(277,238

)

 

 

 

(277,238

)

Accumulated other comprehensive loss, net

 

 

 

(21,473

)

 

 

 

(17,933

)

Total shareholders' equity

 

 

 

393,358

 

 

 

 

338,445

 

Total liabilities and shareholders' equity

 

$

 

710,653

 

 

$

 

637,185

 

 
 
 
 
 

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

Years Ended August 31,

(in thousands)

 

 

2022

 

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net earnings

 

$

 

65,469

 

 

$

 

42,572

 

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

 

 

 

 

 

 

Depreciation and amortization

 

 

 

20,178

 

 

 

 

19,177

 

Provision for uncollectible accounts receivable

 

 

 

903

 

 

 

 

771

 

Deferred income taxes

 

 

 

(2,063

)

 

 

 

1,911

 

Share-based compensation expense

 

 

 

5,458

 

 

 

 

6,186

 

Foreign currency transaction loss (gain)

 

 

 

2,274

 

 

 

 

(1,934

)

Other, net

 

 

 

695

 

 

 

 

(828

)

Changes in assets and liabilities:

 

 

 

 

 

 

Receivables

 

 

 

(47,514

)

 

 

 

(11,535

)

Inventories

 

 

 

(53,803

)

 

 

 

(38,158

)

Other current assets

 

 

 

1,220

 

 

 

 

(8,132

)

Accounts payable

 

 

 

13,832

 

 

 

 

17,993

 

Other current liabilities

 

 

 

186

 

 

 

 

18,433

 

Other noncurrent assets and liabilities

 

 

 

(3,787

)

 

 

 

(2,488

)

Net cash provided by operating activities

 

 

 

3,048

 

 

 

 

43,968

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

 

(15,595

)

 

 

 

(26,511

)

Purchases of marketable securities available-for-sale

 

 

 

(18,468

)

 

 

 

(19,356

)

Proceeds from maturities of marketable securities available-for-sale

 

 

 

25,968

 

 

 

 

18,825

 

Other investing activities, net

 

 

 

(855

)

 

 

 

(577

)

Net cash used in investing activities

 

 

 

(8,950

)

 

 

 

(27,619

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

 

2,894

 

 

 

 

3,965

 

Common stock withheld for payroll tax obligations

 

 

 

(1,181

)

 

 

 

(1,269

)

Proceeds from employee stock purchase plan

 

 

 

412

 

 

 

 

 

Principal payments on long-term debt

 

 

 

(218

)

 

 

 

(195

)

Dividends paid

 

 

 

(14,599

)

 

 

 

(14,166

)

Net cash used in financing activities

 

 

 

(12,692

)

 

 

 

(11,665

)

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

 

(3,465

)

 

 

 

1,020

 

Net change in cash and cash equivalents

 

 

 

(22,059

)

 

 

 

5,704

 

Cash and cash equivalents, beginning of period

 

 

 

127,107

 

 

 

 

121,403

 

Cash and cash equivalents, end of period

 

$

 

105,048

 

 

$

 

127,107

 

 

 

 

 

 

 

 

 

 

Contacts

LINDSAY CORPORATION:

Brian Ketcham

Senior Vice President & Chief Financial Officer

402-827-6579

THREE PART ADVISORS:

Jeff Elliott 972-423-7070

Gary Guyton 214-442-0016

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