EX-99.1 3 c75838exv99w1.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 TUESDAY, MARCH 25, 2003 LINDSAY MANUFACTURING CO. REPORTS FISCAL 2003 SECOND-QUARTER, SIX-MONTH RESULTS OMAHA, NEB., MARCH 25, 2003--LINDSAY MANUFACTURING CO. (NYSE: LNN), a leading manufacturer of center pivot, lateral move, and hose reel irrigation systems, today reported 18 percent growth in revenues and a 27 percent increase in earnings per share for the second quarter ended February 28, 2003, compared with the second quarter of last year. SECOND-QUARTER RESULTS Revenues for the second quarter increased to $48.1 million from $40.7 million for the same period last year. Second-quarter operating income grew 20 percent to $6.5 million from $5.4 million in the second quarter last year. Net earnings for the quarter were $5.0 million, or $0.42 per diluted share, compared with $4.0 million, or $0.33 per diluted share, for the second quarter last year. Irrigation equipment revenues for the quarter were $45.4 million, a 23 percent increase from $37.0 million during the second quarter of the prior year. Diversified products revenues, which have decreased as Lindsay's contract manufacturing customers reduced their reliance on outsourced manufacturing, were $2.8 million compared with $3.6 million in the year-ago period, and unchanged from the first quarter of fiscal 2003. Excluding revenues from acquisitions and start-ups that occurred during the last half of fiscal 2002, organic revenue growth in the quarter was 5 percent year over year. Gross profit rose to $12.3 million from $10.1 million in the prior-year second quarter, while gross margin increased to 25.5 percent from 24.8 percent. Operating expenses for the quarter were greater than the prior year's second quarter, but were in line with the company's expectations as the majority of the increase was attributed to the operations that were added during the last half of fiscal 2002. Commenting on the results, Rick Parod, president and chief executive officer, said, "I am pleased with our overall performance for the quarter and year to date. Irrigation equipment achieved revenue growth from both the domestic and the international markets. We continue to make good progress with our new international operations, including our South African start-up that had been importing product and is now manufacturing our Zimmatic products. Additionally, during the quarter we were successful in hiring a seasoned irrigation sales manager, an Australian national, to manage and expand our Australian dealer organization." Lindsay's order backlog at February 28, 2003, grew to $20.4 million from $17.4 million at February 28, 2002. SIX-MONTH RESULTS Total revenues for the six months ending February 28, 2003, were $81.6 million, an 18 percent increase from $69.2 million for the prior year's six-month period. Irrigation equipment revenues of $76.0 million were 23 percent greater than a year ago, while diversified products revenues were $5.6 million, or 24 percent less than the previous year. Excluding revenues from acquisitions and start-ups that occurred during the last half of fiscal 2002, organic revenue growth was 6 percent for the six-month period. Net earnings grew 55 percent to $7.8 million, or $0.66 per diluted share, from $5.1 million, or $0.43 per diluted share, for the first six months of fiscal 2002. The 2003 six-month net earnings include other income of $1.8 million, or $0.15 per share, to recognize the cash value of certain life insurance policies; $1.7 million of this was included in Lindsay's first quarter. Excluding this item, six-month net earnings rose 20 percent to $6.1 million, or $0.51 per diluted share. Shareholders' equity at February 28, 2003, was $98.0 million, or $8.35 per outstanding common share, compared with $85.6 million, or $7.33 per outstanding common share, at February 28, 2002. Cash and marketable securities at February 28, 2003, were $41.2 million compared with $41.9 million at February 28, 2002. FISCAL 2003 OUTLOOK Concerning the balance of the year, Parod commented, "Our outlook remains positive for our overall business due to solid interest in our new product offerings, low financing rates for irrigation equipment purchases, key agricultural commodity prices that are approximately 20 percent greater than year-ago levels, and a favorable U.S. farm bill that includes the Environmental Quality Incentives Program. However, we are also faced with several uncertainties, including the soft U.S. economy and the duration of U.S. military action in Iraq. On balance, we continue to believe that we will achieve revenue and earnings growth during the remainder of our fiscal year." SECOND-QUARTER CONFERENCE CALL Lindsay's fiscal 2003 second-quarter 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. 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 February 28, 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 FEBRUARY 28, 2003 AND 2002 AND AUGUST 31, 2002
(UNAUDITED) (UNAUDITED) FEBRUARY FEBRUARY AUGUST ($ IN THOUSANDS, EXCEPT PAR VALUES) 2003 2002 2002 ----------------------------------- ---- ---- ---- ASSETS Cash and cash equivalents $ 5,431 $ 7,646 $ 12,425 Marketable securities 7,971 9,916 13,289 Receivables, net 36,657 31,624 23,385 Inventories, net 21,423 15,309 15,583 Deferred income taxes 2,355 1,870 2,573 Other current assets 944 553 782 --------- --------- --------- Total current assets 74,781 66,918 68,037 Long-term marketable securities 27,813 24,354 25,419 Property, plant and equipment, net 14,270 13,927 14,512 Other noncurrent assets 7,176 4,555 4,715 --------- --------- --------- Total assets $ 124,040 $ 109,754 $ 112,683 ========= ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ 10,008 $ 7,623 $ 6,068 Other current liabilities 13,946 14,653 13,640 --------- --------- --------- Total current liabilities 23,954 22,276 19,708 Other noncurrent liabilities 2,114 1,847 2,311 --------- --------- --------- Total liabilities 26,068 24,123 22,019 --------- --------- --------- 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, 17,458,052, 17,409,900 and 17,430,348 shares issued in February 2003 and 2002 and August 2002) 17,458 17,410 17,430 Capital in excess of stated value 2,467 2,039 2,472 Retained earnings 168,589 156,740 161,574 Less treasury stock, (at cost, 5,724,069 shares) (89,898) (89,898) (89,898) Accumulated other comprehensive loss (644) (660) (914) --------- --------- --------- Total shareholders' equity 97,972 85,631 90,664 --------- --------- --------- Total liabilities and shareholders' equity $ 124,040 $ 109,754 $ 112,683 ========= ========= =========
LINDSAY MANUFACTURING CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS AND SIX MONTHS ENDED FEBRUARY 28, 2003 AND 2002
(UNAUDITED) (UNAUDITED) THREE MONTHS ENDED SIX MONTHS ENDED --------------------- --------------------- FEBRUARY FEBRUARY FEBRUARY FEBRUARY (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2003 2002 2003 2002 ---------------------------------------- ---- ---- ---- ---- Operating revenues $ 48,127 $ 40,668 $ 81,589 $ 69,213 Cost of operating revenues 35,865 30,586 62,316 53,521 -------- -------- -------- -------- Gross profit 12,262 10,082 19,273 15,692 -------- -------- -------- -------- Operating expenses: Selling expense 2,459 2,043 5,099 4,159 General and administrative expense 2,693 2,051 5,271 4,076 Engineering and research expense 634 574 1,232 1,086 -------- -------- -------- -------- Total operating expenses 5,786 4,668 11,602 9,321 -------- -------- -------- -------- Operating income 6,476 5,414 7,671 6,371 Interest income, net 390 356 813 793 Other income (expense), net 242 (24) 2,029 155 -------- -------- -------- -------- Earnings before income taxes 7,108 5,746 10,513 7,319 Income tax provision 2,156 1,791 2,677 2,269 -------- -------- -------- -------- Net earnings $ 4,952 $ 3,955 $ 7,836 $ 5,050 ======== ======== ======== ======== Basic net earnings per share $ 0.42 $ 0.34 $ 0.67 $ 0.43 ======== ======== ======== ======== Diluted net earnings per share $ 0.42 $ 0.33 $ 0.66 $ 0.43 ======== ======== ======== ======== Average shares outstanding 11,733 11,655 11,723 11,642 Diluted effect of stock options 158 168 188 165 -------- -------- -------- -------- Average shares outstanding assuming dilution 11,891 11,823 11,911 11,807 ======== ======== ======== ======== Cash dividends per share $ 0.035 $ 0.035 $ 0.070 $ 0.070 ======== ======== ======== ========