Lindsay Corporation Reports Fiscal 2012 Fourth Quarter and Full Year Results

Lindsay Corporation Reports Fiscal 2012 Fourth Quarter and Full Year Results

OMAHA, Neb.--(BUSINESS WIRE)-- Lindsay Corporation (NYS: LNN) , a leading provider of irrigation systems and infrastructure products, today announced results for its fourth quarter ended August 31, 2012.

Fourth Quarter Results


Fourth quarter fiscal 2012 total revenues of $127.8 million increased 10 percent from $116.1 million in the same prior year period. Net earnings were $8.8 million or $0.68 per diluted share compared with $5.9 million or $0.46 per diluted share in the prior fiscal year's fourth quarter.

Total irrigation equipment revenues increased 18 percent to $107.9 million from $91.4 million in the prior fiscal year's fourth quarter. Domestic irrigation revenues of $56.2 million increased 18 percent, while international irrigation revenues of $51.7 million increased 19 percent. Infrastructure revenues decreased 20 percent to $19.9 million primarily due to lower sales and leases of Quick-Change Moveable Barrier (QMB) product.

Gross margin was 25.6 percent compared to 25.9 percent in the prior year's fourth quarter. Irrigation gross margins increased by approximately one percentage point primarily due to fixed cost leverage and efficiency gains over the prior year. Infrastructure margins decreased approximately six percentage points due to lower QMB sales partially offset by improved margins in road safety and diversified products.

Operating expenses were $20.1 million in the quarter compared to $20.3 million in the fourth quarter of the prior fiscal year. Current year expenses included incremental expenses of an acquired company purchased in fiscal 2011 and higher sales and marketing expenses while the prior year period included expenses associated with an ERP implementation and an adverse administrative tax ruling in a foreign business unit. Operating expenses were 15.7 percent of sales in the fourth quarter of 2012 compared with 17.5 percent of sales in the prior year period. Operating margins of 9.9 percent increased from 8.4 percent in the prior year period.

Cash and cash equivalents of $143.4 million were $35.3 million higher compared to the end of the fourth quarter last year, while debt decreased $4.3 million.

Lindsay's backlog of unshipped orders at August 31, 2012 was $57.1 million compared with $46.0 million at August 31, 2011 and $44.5 million at May 31, 2012.

Twelve Month Results

Total revenues for the year ended August 31, 2012 were $551.3 million, a 15 percent increase from $478.9 million for the prior year period. Total irrigation equipment revenues of $475.3 million increased 28 percent from a year ago, while infrastructure revenues decreased 30 percent to $76.0 million. The Company's operating income for the twelve-month period was $65.5 million compared to $56.6 million during the same prior year period. Net earnings were $43.3 million or $3.38 per diluted share, as compared to $36.8 million, or $2.90 per diluted share for the prior year period.

Fiscal 2012 operating costs included $7.2 million of expenses accrued in the Company's first fiscal quarter, 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. Comparatively, fiscal 2011 included environmental remediation expense of $1.3 million, or $0.07 per diluted share after tax.

Outlook

Rick Parod, president and chief executive officer, commented, "It has been a record year for Lindsay. Irrigation sales and profits have experienced year over year increases driven by positive farmer sentiment, farm incomes and commodity prices affected by the dry weather. These same positive factors have continued into the early months of fiscal 2013."

Parod added, "Infrastructure performance in 2012 was constrained by global government spending. However, with the recent passage of a U.S. highway bill providing funding through 2014 and the progress we have made in reducing our cost structure, we expect sales growth and profit improvement in the infrastructure business in 2013. Overall the long term fundamentals of the business remain very positive, as growth drivers of population growth, expanded food production and efficient and environmentally friendly water use remain imperative."

Fourth-Quarter Conference Call

Lindsay's fiscal 2012 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 domestically, or (706) 758-0065 internationally, and referring to conference ID # 34441230. 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 first 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, Barrier Systems Inc. and Snoline S.P.A. At August 31, 2012, Lindsay had approximately 12.7 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 atwww.lindsay.com.For more information on the Company's infrastructure products, visitwww.barriersystemsinc.comandwww.snoline.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

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

Three months ended

Twelve months ended

August 31,

August 31,

($ in thousands, except per share amounts)

2012

2011

2012

2011

Operating revenues

$

127,817

$

116,110

$

551,255

$

478,890

Cost of operating revenues

95,069

86,056

402,737

349,105

Gross profit

32,748

30,054

148,518

129,785

Operating expenses:

Selling expense

6,968

6,984

28,104

27,842

General and administrative expense

10,434

10,898

38,198

33,659

Engineering and research expense

2,654

2,278

9,481

10,403

Environmental remediation expense

-

120

7,225

1,295

Total operating expenses

20,056

20,280

83,008

73,199

Operating income

12,692

9,774

65,510

56,586

Other income (expense):

Interest expense

(116

)

(171

)

(492

)

(762

)

Interest income

177

165

504

315

Other income (expense), net

(100

)

9

(414

)

375

Earnings before income taxes

12,653

9,777

65,108

56,514

Income tax provision

3,894

3,875

21,831

19,712

Net earnings

$

8,759

$

5,902

$

43,277

$

36,802

Basic net earnings per share

$

0.69

$

0.47

$

3.41

$

2.93

Diluted net earnings per share

$

0.68

$

0.46

$

3.38

$

2.90

Weighted average shares outstanding

12,718

12,624

12,704

12,560

Diluted effect of stock equivalents

125

113

106

132

Weighted average shares outstanding assuming dilution

12,843

12,737

12,810

12,692

Cash dividends per share

$

0.115

$

0.090

$

0.385

$

0.345

Lindsay Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)

August 31,

August 31,

($ and shares in thousands, except par values)

2012

2011

ASSETS

Current assets:

Cash and cash equivalents

$

143,444

$

108,167

Receivables, net

82,565

79,006

Inventories, net

52,873

49,524

Deferred income taxes

9,505

8,598

Other current assets

10,478

12,398

Total current assets

298,865

257,693

Property, plant and equipment, net

56,180

58,465

Other intangible assets, net

25,070

28,639

Goodwill

29,961

30,943

Other noncurrent assets

5,455

5,404

Total assets

$

415,531

$

381,144

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

31,372

$

32,153

Current portion of long-term debt

4,285

4,286

Other current liabilities

44,781

42,880

Total current liabilities

80,438

79,319

Pension benefits liabilities

6,821

6,231

Long-term debt

-

4,285

Deferred income taxes

9,984

12,550

Other noncurrent liabilities

7,450

3,094

Total liabilities

104,693

105,479

Shareholders' equity:

Preferred stock

-

-

Common stock

18,421

18,374

Capital in excess of stated value

43,140

39,058

Retained earnings

341,115

302,732

Less treasury stock

(90,961

)

(90,961

)

Accumulated other comprehensive (loss) income, net

(877

)

6,462

Total shareholders' equity

310,838

275,665

Total liabilities and shareholders' equity

$

415,531

$

381,144

Lindsay Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

($ in thousands)

Years Ended August 31,

2012

2011

CASH FLOWS FROM OPERATING ACTIVITIES:

Net earnings

$

43,277

$

36,802

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

Depreciation and amortization

12,468

11,734

Provision for uncollectible accounts receivable

379

388

Deferred income taxes

(3,868

)

(2,828

)

Share-based compensation expense

3,939

3,474

Other, net

959

208

Changes in assets and liabilities:

Receivables

(7,570

)

(12,626

)

Inventories