EX-99.1 3 c80159exv99w1.txt PRESS RELEASE EXHIBIT 99.1 AT THE COMPANY: AT FRB/WEBER SHANDWICK: Bruce C. Karsk Marilyn Windsor Diane Hettwer Tim Grace Executive VP and CFO General Inquiries Analyst Inquiries Media Inquiries 402-829-6803 702-515-1260 312-640-6760 312-640-6667 FOR IMMEDIATE RELEASE MONDAY, OCTOBER 13, 2003 LINDSAY MANUFACTURING CO. REPORTS FISCAL FOURTH-QUARTER AND 2003 RESULTS COMPANY ACHIEVES RECORD REVENUES FOR FISCAL 2003 OMAHA, NEB., OCTOBER 13, 2003--LINDSAY MANUFACTURING CO. (NYSE: LNN), a leading manufacturer of center pivot, lateral move, and hose reel irrigation systems, today reported its results for the fourth quarter and fiscal year ended August 31, 2003. The company noted that fiscal 2003 marked the second consecutive year of 12 percent or more revenue growth and 20 percent or better earning per share growth. FOURTH-QUARTER RESULTS Fourth-quarter fiscal 2003 revenues were $33.0 million compared with $32.5 million for the same prior-year quarter. Net earnings rose to $1.9 million, or $0.16 per diluted share, from $915,000, or $0.08 per diluted share, in prior year's fourth quarter. Revenues from both the irrigation equipment segment and diversified product segment were slightly higher during the quarter. Fourth-quarter gross margin rose to 24.2 percent from 17.5 percent, aided by a year-end LIFO reserve inventory gain of $660,000. Excluding the LIFO gain, gross margin was 22.2 percent. Operating expenses were higher in the fourth quarter due to increased selling costs as the company added select investments to support domestic and international growth initiatives. Additionally, the company increased its advertising and marketing expenditures during this year's fourth quarter compared with last year. Lindsay's order backlog at August 31, 2003, improved to $21.9 million compared with $18.9 million at August 31, 2002. Rick Parod, president and chief executive officer, commented, "Our fourth-quarter results reflect a good performance, even after taking into account significantly lower exports sales to the Middle East. Both our domestic irrigation and our international operations had revenue expansion." Parod added, "Overall, sales are growing and gross margin is improving. While we are pleased with our progress, we continue to see significant opportunities. We will continue to challenge all of our operations to continuously improve their market and cost positions." FISCAL 2003 RESULTS Fiscal 2003 total revenues were $163.4 million, up 12 percent from $145.9 million a year ago. Net earnings increased 20 percent to $12.9 million, or $1.08 per diluted share, in fiscal 2003 compared with $10.7 million, or $0.90 per diluted share, in fiscal 2002. Irrigation equipment revenues increased by 14 percent to $151.3 million from $132.7 million in the prior fiscal year. Diversified products revenues were $12.1 million compared with $13.2 million in fiscal 2002. Fiscal 2003 gross margin increased to 24.3 percent from 22.6 percent in the prior year. Gross margin rose due to tight manufacturing and raw material cost control, a more favorable product mix, and increased manufacturing throughput. Operating income rose 25 percent to $16.4 million from $13.1 million, as operating margin increased to 10.0 percent from 9.0 percent in fiscal 2002. Shareholders' equity at August 31, 2003, was $104.3 million, or $8.89 per outstanding common share, compared with $92.4 million, or $7.89 per outstanding common share, at August 31, 2002. Cash and marketable securities at August 31, 2003, were $62.8 million compared with $51.1 million at August 31, 2002. Operating cash flow for the year was $16.3 million compared with $11.6 million for fiscal 2002. On July 29, 2003, Lindsay announced that it had increased its regular quarterly cash dividend by 43 percent to $0.05 per share from $0.035 per share. The new annual indicated rate is $0.20 per share, up from an annual indicated rate of $0.14 per share. OTHER INCOME ITEM RESTATED Lindsay had recorded other non-operating income of $1.7 million during its quarter ended November 30, 2002, in order to account for the previously unrecorded cumulative cash surrender value of certain life insurance policies that had accumulated since 1994. After reviewing this accounting treatment further, Lindsay has revised previously reported quarterly results for fiscal 2003 to record the cumulative cash surrender value as a correction of error in prior periods. Accordingly, last week the company amended its Form 10-Qs for each of the three prior quarters of fiscal year 2003, reducing previously reported first quarter and year-to-date non-operating income by $1.7 million. This reduction in other non-operating income did not impact the financial condition or operating cash flows of Lindsay during fiscal 2003. FISCAL 2004 OUTLOOK Parod commented, "Looking ahead to fiscal 2004, we expect continued growth in company-wide revenues and earnings for the year. We anticipate further expansion in our U.S. operations and on the international front, we expect to continue to grow sales in Western Europe, South Africa and Brazil. We also view international as our biggest opportunity to improve sales margins. For the fiscal year, we anticipate double-digit growth in earnings on revenue growth of approximately 8 to 10 percent, excluding acquisitions. Our mission is to be the worldwide leader in providing intelligent water and plant nutrient management systems. We have the strong cash flow and financial flexibility to create shareholder value by pursuing a balance of accretive acquisitions, organic growth opportunities, share repurchase and dividend payments." FOURTH-QUARTER AND FISCAL YEAR-END CONFERENCE CALL Lindsay's fiscal 2003 investor conference call is scheduled for 11 a.m. ET today. This call will be simulcast and available over the Internet via the web site www.vcall.com. The webcast will be available for replay for a period of 30 days. Lindsay will have a slide presentation available to augment management's formal presentation, which will be accessible via the company's website at www.lindsaymanufacturing.com. ABOUT THE COMPANY Lindsay manufactures and markets Zimmatic, Greenfield, and Perrot center pivot, lateral move and hose reel irrigation systems and GrowSmart controls, all of which are used by farmers to increase or stabilize crop production while conserving water, energy, and labor. The Company also produces large diameter steel tubing and provides outsourced manufacturing and production services for other companies. At August 31, 2003, Lindsay had approximately 11.7 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN. 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. Forward-looking statements include the information concerning possible or assumed future results of operations of the Company and those statements preceded by, followed by or including the words "expectation," "outlook," "could," "may," "should," or similar expressions. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. FOR MORE INFORMATION REGARDING LINDSAY MANUFACTURING CO., SEE LINDSAY'S WEBSITE AT www.lindsaymanufacturing.com - Financial Tables Follow - LINDSAY MANUFACTURING CO. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AUGUST 31, 2003 AND 2002
AUGUST AUGUST (IN THOUSANDS, EXCEPT PAR VALUES) 2003 2002 --------------------------------- ---------- ---------- unaudited unaudited ASSETS Current Assets: Cash and cash equivalents $ 15,368 $ 12,425 Marketable securities 8,770 13,289 Receivables, net 22,970 23,729 Inventories, net 20,019 15,583 Deferred income taxes 1,743 2,573 Other current assets 1,010 782 ---------- ---------- Total current assets 69,880 68,381 Long-term marketable securities 38,674 25,419 Property, plant and equipment, net 13,889 14,512 Other noncurrent assets 8,219 6,406 ---------- ---------- Total assets $ 130,662 $ 114,718 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 8,228 $ 6,068 Other current liabilities 15,495 13,984 ---------- ---------- Total current liabilities 23,723 20,052 Pension benefits liabilities 2,489 1,688 Noncurrent liabilities 159 623 ---------- ---------- Total liabilities 26,371 22,363 ---------- ---------- Commitments and Contingencies Shareholders' equity: Preferred stock, ($1 par value, 2,000,000 shares authorized, no shares issued and outstanding) -- -- Common stock, ($1 par value, 25,000,000 shares authorized, 17,459,561 and 17,430,348 shares issued in August 2003 and 2002) 17,460 17,430 Capital in excess of stated value 2,484 2,472 Retained earnings 174,333 163,265 Less treasury stock, (at cost, 5,724,069 shares) (89,898) (89,898) Accumulated other comprehensive gain (loss) (88) (914) ---------- ---------- Total shareholders' equity 104,291 92,355 ---------- ---------- Total liabilities and shareholders' equity $ 130,662 $ 114,718 ========== ==========
LINDSAY MANUFACTURING CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS AND YEAR ENDED AUGUST 31, 2003 AND 2002
(UNAUDITED) (UNAUDITED) THREE MONTHS ENDED YEAR ENDED ----------------------------- ----------------------------- AUGUST AUGUST AUGUST AUGUST (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2003 2002 2003 2002 ---------------------------------------- ------------ ------------ ------------ ------------ Operating revenues $ 32,952 $ 32,544 $ 163,374 $ 145,890 Cost of operating revenues 24,978 26,862 123,628 112,963 ------------ ------------ ------------ ------------ Gross profit 7,974 5,682 39,746 32,927 ------------ ------------ ------------ ------------ Operating expenses: Selling expense 2,756 2,385 10,517 8,804 General and administrative expense 2,277 2,295 10,285 8,630 Engineering and research expense 671 696 2,578 2,377 ------------ ------------ ------------ ------------ Total operating expenses 5,704 5,376 23,380 19,811 ------------ ------------ ------------ ------------ Operating income 2,270 306 16,366 13,116 Interest income, net 414 478 1,577 1,647 Other income, net 260 394 844 617 ------------ ------------ ------------ ------------ Earnings before income taxes 2,944 1,178 18,787 15,380 Income tax provision 1,024 263 5,900 4,650 ------------ ------------ ------------ ------------ Net earnings $ 1,920 $ 915 $ 12,887 $ 10,730 ============ ============ ============ ============ Basic net earnings per share $ 0.16 $ 0.08 $ 1.10 $ 0.92 ============ ============ ============ ============ Diluted net earnings per share $ 0.16 $ 0.08 $ 1.08 $ 0.90 ============ ============ ============ ============ Average shares outstanding 11,735 11,704 11,729 11,674 Diluted effect of stock options 208 210 180 184 ------------ ------------ ------------ ------------ Average shares outstanding assuming dilution 11,943 11,914 11,909 11,858 ============ ============ ============ ============ Cash dividends per share $ 0.050 $ 0.035 $ 0.155 $ 0.140 ============ ============ ============ ============
LINDSAY MANUFACTURING CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE TWELVE MONTHS ENDED AUGUST 31, 2003 AND 2002 (UNAUDITED)
August August ($ in thousands) 2003 2002 ---------------- ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 12,887 $ 10,730 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 3,525 3,402 Amortization of marketable securities premiums, net (145) (212) Gain on sale of fixed assets (76) (78) Provision for uncollectible accounts receivable (275) 271 Deferred income taxes 830 (242) Stock option tax benefits (expense) 32 269 Equity in net earnings of equity method investments (125) (253) Other, net -- (268) Changes in assets and liabilities: Receivables, net 1,034 628 Inventories, net (4,436) (2,720) Other current assets 1,211 (308) Accounts payable, trade 2,160 (2,177) Other current liabilities 510 1,674 Current taxes payable 1,001 397 Other noncurrent assets and liabilities (1,881) 450 ------------ ------------ Net cash provided by operating activities 16,252 11,563 ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment (2,803) (2,217) Acquisitions of business -- (4,813) Proceeds from sale of property, plant and equipment 63 206 Purchases of marketable securities available for sale (10,476) -- Proceeds from maturities of marketable securities available for sale -- -- Purchases of marketable securities held to maturity (12,465) (15,904) Proceeds from maturities of marketable securities held to maturity 14,231 7,555 Equity Investment -- (80) ------------ ------------ Net cash used in provided by investing activities (11,450) (15,253) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock under stock option plan, net of repurchases and cancellations 10 186 Dividends paid (1,818) (1,631) ------------ ------------ Net cash used in financing activities (1,808) (1,445) ------------ ------------ Effect of exchange rate changes on cash (51) (15) Net increase (decrease) in cash and cash equivalents 2,943 (5,150) Cash and cash equivalents, beginning of period 12,425 17,575 ------------ ------------ Cash and cash equivalents, end of period $ 15,368 $ 12,425 ============ ============