Lindsay Corporation Reports Fiscal 2013 Second Quarter Results

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.


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, 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

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
Three months endedSix months ended
February 28,February 29,February 28,February 29,
($ and shares in thousands, except per share amounts)2013201220132012
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 expense8,0006,86815,32113,812
General and administrative expense10,1558,43420,27317,374
Engineering and research expense2,7632,2445,9174,300
Environmental remediation expense -  -  -  7,225 
Total operating expenses 20,918  17,546  41,511  42,711 
Operating income29,44618,94851,71024,031
Other income (expense):
Interest expense(83)(130)(226)(273)
Interest income12994267190
Other income (expense), net (4) 515  120  (80)
Earnings before income taxes29,48819,42751,87123,868
Income tax expense 10,137  6,653  17,792  8,173 
Net earnings$19,351 $12,774 $34,079 $15,695 
Earnings per share:
Shares used in computing earnings per share:
Cash dividends declared per share$0.115$0.090$0.230$0.180
Lindsay Corporation and Subsidiaries
 Three months ended Six months ended
February 28, February 29,February 28, February 29,
($ in thousands)2013201220132012
Net earnings$19,351 $12,774$34,079 $15,695 
Other comprehensive income (loss):
Defined benefit pension plan adjustment, net of tax33256651
Unrealized (loss) gain on cash flow hedges, net of tax(35)48(9)120
Foreign currency translation adjustment, net of
hedging activities and tax1,148 1,3441,107 (2,787)
Total other comprehensive income (loss), net of tax
expense (benefit) of $275, $216, ($118) and $3551,146 1,4171,164 (2,616)
Total comprehensive income$20,497 $14,191$35,243 $13,079 
Read Full Story
Scroll to continue with content AD
  • DJI26935.07-159.72-0.59%
    S&P 5002992.07-14.72-0.49%
  • NIKKEI 22522079.0934.640.16%
    Hang Seng26435.67-33.28-0.13%
  • USD (PER EUR)1.100.00000.00%
    USD (PER CHF)1.010.00000.00%
    JPY (PER USD)107.520.00000.00%
    GBP (PER USD)1.250.00000.00%
More to Explore
Lindsay Corporation and Subsidiaries
February 28,February 29,August 31,
($ and shares in thousands, except par values)201320122012
Current Assets:
Cash and cash equivalents$159,583$104,953$143,444
Receivables, net of allowance of $1,915, $2,002 and $1,717105,39977,53682,565
Inventories, net78,07168,57852,873
Deferred income taxes9,1108,3369,505
Other current assets 15,020  14,193  10,478 
Total current assets 367,183  273,596  298,865 
Property, Plant and Equipment:
Less accumulated depreciation (85,104) (77,177) (80,515)
Property, plant and equipment, net 56,869  57,236  56,180 
Intangibles, net23,72926,83925,070
Other noncurrent assets 4,490  5,486  5,455 
Total assets$482,482 $393,600 $415,531 
Current Liabilities:
Accounts payable$63,651$39,417$31,372
Current portion of long-term debt2,1434,2864,285
Other current liabilities 45,724  33,428  44,781 
Total current liabilities 111,518  77,131  80,438 
Pension benefits liabilities6,6766,1156,821
Long-term debt-2,143-
Deferred income taxes9,71611,6789,984
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 issued18,55318,40918,421
Capital in excess of stated value47,03640,73643,140
Retained earnings372,242316,141341,115
Less treasury stock (at cost, 5,698 shares)(90,961)(90,961)(90,961)
Accumulated other comprehensive income (loss), net 287