-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Rpsea+s0+X2MslCpkQD63hG4OOk7KW8AOF9SOTCSvIlt3ziUxG6WLXnxiFdel0b3 R//mysmhGvcrD+ffdwOOfw== 0000950137-06-003565.txt : 20060323 0000950137-06-003565.hdr.sgml : 20060323 20060323093409 ACCESSION NUMBER: 0000950137-06-003565 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060322 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060323 DATE AS OF CHANGE: 20060323 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LINDSAY MANUFACTURING CO CENTRAL INDEX KEY: 0000836157 STANDARD INDUSTRIAL CLASSIFICATION: FARM MACHINERY & EQUIPMENT [3523] IRS NUMBER: 470554096 STATE OF INCORPORATION: DE FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13419 FILM NUMBER: 06705067 BUSINESS ADDRESS: STREET 1: 2707 NORTH 108TH STREET STE 102 CITY: OMAHA STATE: NE ZIP: 68644 BUSINESS PHONE: 4024282131 MAIL ADDRESS: STREET 1: 2707 NORTH 108TH STREET STE 102 CITY: OMAHA STATE: NE ZIP: 68644 8-K 1 c03687e8vk.txt CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): March 22, 2006 LINDSAY MANUFACTURING CO. ------------------------- (Exact name of registrant as specified in its charter) Delaware 1-13419 47-0554096 - ------------------------ ------------------------ ------------------------- (State of Incorporation) (Commission File Number) (IRS Employer Identification Number) 2707 North 108th Street Suite 102 Omaha, Nebraska 68164 ---------------------------------------- ------------ (Address of principal executive offices) (Zip Code) (402) 428-2131 -------------------------------------------------- (Registrant's telephone number, including area code) Not applicable ----------------------------------------------------------- (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On March 22, 2006, Lindsay Manufacturing Co. (the "Company") issued a press release announcing the Company's results of operations for its second quarter of fiscal 2006 ended February 28, 2006. A copy of the press release is furnished herewith as Exhibit 99.1. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS 99.1 Press Release, dated March 22, 2006, issued by the Company The information contained in this Current Report under Item 2.02, including the exhibit referenced in Item 9.01 below, is being "furnished" pursuant to "Item 2.02. Results of Operations and Financial Condition" of Form 8-K and, as such, shall not be deemed to be "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in Item 2.02 of this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: March 23, 2006 LINDSAY MANUFACTURING CO. By: /s/ David Downing ------------------------------------- David Downing, Vice President and Chief Financial Officer EX-99.1 2 c03687exv99w1.txt PRESS RELEASE EXHIBIT 99.1 [LINDSAY LOGO] MANUFACTURING CO. 2707 NO. 108TH ST. OMAHA, NE 68164 TEL: 402-829-6800 FAX: 402-829-6836 FOR FURTHER INFORMATION, CONTACT: LINDSAY MANUFACTURING: HALLIBURTON INVESTOR RELATIONS: David Downing Jeff Elliott or Geralyn DeBusk VP and CFO 972-458-8000 402-827-6235 LINDSAY MANUFACTURING CO. REPORTS FISCAL 2006 SECOND QUARTER, SIX MONTH RESULTS OMAHA, NEB., MARCH 22, 2006 -- LINDSAY MANUFACTURING CO. (NYSE: LNN), a leading manufacturer of center pivot, lateral move, and hose reel irrigation systems, today announced results for its fiscal second quarter ended February 28, 2006. Revenues increased 32 percent from the same period a year ago, and earnings per diluted share were $0.15 compared with $0.05 in the comparable prior year period. SECOND QUARTER RESULTS Second quarter fiscal 2006 total revenues were $54.9 million compared with $41.5 million for the year-ago period. Net earnings were $1.7 million or $0.15 per diluted share, versus $600,000, or $0.05 per diluted share, in the prior year's second quarter. The current period includes a $0.02 unfavorable impact to diluted earnings per share related to expensing of stock-based compensation. Total irrigation equipment revenues increased 36 percent to $49.2 million from $36.2 million in the prior fiscal year's second quarter, as farmer sentiment improved with stabilized worldwide agricultural commodity prices and input costs. Domestic irrigation revenues increased 42 percent, while international irrigation revenues increased 22 percent. Diversified products revenues were $5.7 million compared with $5.3 million in the year-ago period, an increase of 8 percent. Rick Parod, president and chief executive officer, commented, "We are pleased that demand for irrigation equipment continued to rebound from the prior year when growers deferred purchases. While demand in most markets strengthened, the markets in Western Europe, South Africa and Brazil remain depressed and we continued our cost reduction actions in those markets during the period." Gross margin declined to 18.0 percent from 18.7 percent a year ago. Gross selling margins in the domestic market were slightly lower compared with the second quarter of fiscal 2005 as a result of higher zinc and structural steel costs. International gross margins were impacted by competitive intensity particularly in the Western European market. The quarter's operating income was $2.1 million versus $710,000 in the comparable fiscal 2005 quarter, driven by the higher revenues. Operating expenses rose 10 percent to $7.8 million from $7.1 million, due principally to inclusion of stock-based compensation expenses of $421,000 and inclusion of factory consolidation costs in South Africa of $186,000. Interest and other income totaled $416,000 in the quarter compared to $363,000 in the fiscal 2005 quarter. Parod stated, "We continue to take actions to reduce expenses and improve efficiency across the global organization. I am also pleased with the continued improvements in our global management of working capital." Lindsay's order backlog at February 28, 2006, was $23.9 million compared with $20.9 million at November 30, 2005, and $15.3 million at February 28, 2005. SIX MONTH RESULTS Total revenues for the six months were $94.4 million, a 16 percent increase from $81.3 million for the prior year's six-month period. Total irrigation equipment revenues of $83.3 million rose 16 percent from a year ago, while diversified products revenues grew 14 percent, rising to $11.1 million. Net earnings were $2.2 million, or $0.19 per diluted share, compared with $775,000, or $0.06 per diluted share, for the first six months of fiscal 2005. The six month results include a $0.04 unfavorable impact to diluted earnings per share related to expensing of stock based compensation. Shareholders' equity at February 28, 2006 was $111.9 million, or $9.70 per outstanding common share, compared with $110.2 million, or $9.45 per outstanding common share at February 28, 2005. Cash and marketable securities at February 28, 2006 were $50.9 million compared with $43.8 million at February 28, 2005. OUTLOOK Parod stated, "In the United States, the USDA projects net farm income to be lower in 2006 due to lower production, lower commodity prices and higher input costs; yet, irrigation equipment demand remains strong due to improved farmer sentiment and dry conditions. Globally, long-term drivers remain positive as population growth, the need for productivity improvements and fresh water constraints drive demand for our irrigation technology." "Strengthening our margins during a period of rising steel and zinc prices remains a challenge given the short-term competitive environment. We have taken actions to tightly control production costs while maximizing our throughput during our peak selling months. We are also continuing growth initiatives related to finding accretive acquisitions in infrastructure and water products. We will continue to pursue our growth initiatives and leverage our strong cash flow and financial flexibility to create shareholder value through a balance of organic growth opportunities, accretive acquisitions, share repurchases and dividend payments." SECOND QUARTER CONFERENCE CALL Lindsay's second quarter fiscal 2006 investor conference call is scheduled for 11:00 a.m. ET today. The conference call will be simulcast live on the Internet, and can be accessed by logging onto www.lindsaymanufacturing.com or www.vcall.com. A replay of the call will be available for 30 days. Lindsay 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 Zimmatic, Greenfield, Stettyn 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, 2006, Lindsay had approximately 11.5 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 WEB SITE AT www.lindsaymanufacturing.com LINDSAY MANUFACTURING CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE-MONTHS AND SIX-MONTHS ENDED FEBRUARY 28, 2006 AND 2005
(UNAUDITED) (UNAUDITED) THREE MONTHS ENDED SIX MONTHS ENDED ----------------------------- ------------------------- FEBRUARY FEBRUARY FEBRUARY FEBRUARY (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2006 2005 2006 2005 - ------------------------------------------------ -------------- ------------- -------------- --------- Operating revenues.............................. $ 54,912 $ 41,487 $ 94,416 $ 81,254 Cost of operating revenues...................... 45,048 33,721 77,125 66,915 -------------- ------------- -------------- --------- Gross profit.................................... 9,864 7,766 17,291 14,339 -------------- ------------- -------------- --------- Operating expenses: Selling expense............................... 2,884 2,999 5,732 5,746 General and administrative expense............ 4,285 3,397 7,854 6,994 Engineering and research expense.............. 607 660 1,254 1,356 -------------- ------------- -------------- --------- Total operating expenses........................ 7,776 7,056 14,840 14,096 -------------- ------------- -------------- --------- Operating income................................ 2,088 710 2,451 243 Interest income, net............................ 436 295 863 556 Other (loss) income, net........................ (20) 68 (18) 452 -------------- ------------- -------------- --------- Earnings before income taxes.................... 2,504 1,073 3,296 1,251 Income tax provision............................ 787 473 1,068 476 -------------- ------------- -------------- --------- Net earnings.................................... $ 1,717 $ 600 $ 2,228 $ 775 ============== ============= ============== ========= Basic net earnings per share.................... $ 0.15 $ 0.05 $ 0.19 $ 0.07 ============== ============= ============== ========= Diluted net earnings per share.................. $ 0.15 $ 0.05 $ 0.19 $ 0.06 ============== ============= ============== ========= Average shares outstanding...................... 11,522 11,710 11,521 11,741 Diluted effect of stock options................. 174 168 163 188 -------------- ------------- -------------- --------- Average shares outstanding assuming dilution.... 11,696 11,878 11,684 11,929 ============== ============= ============== ========= Cash dividends per share........................ $ 0.060 $ 0.055 $ 0.120 $ 0.110 ============== ============= ============== =========
Net income for the three-months and six-months ended February 28, 2006, included stock-based compensation expense under SFAS 123(R) of $275,000 and $519,000, respectively, net of tax. There was no stock-based compensation expense under SFAS 123 in the first or second quarters of fiscal 2005 because the Company did not adopt the recognition provisions of SFAS 123. LINDSAY MANUFACTURING CO. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS FEBRUARY 28, 2006 AND 2005 AND AUGUST 31, 2005
(UNAUDITED) (UNAUDITED) FEBRUARY FEBRUARY AUGUST ($ IN THOUSANDS, EXCEPT PAR VALUES) 2006 2005 2005 ---------------- ----------- ------------- ASSETS Current Assets: Cash and cash equivalents..................................... $ 26,907 $ 7,571 $ 25,564 Marketable securities......................................... 13,104 11,720 14,101 Receivables, net.............................................. 35,999 35,680 28,919 Inventories, net.............................................. 26,292 29,858 19,311 Deferred income taxes.......................................... 3,948 1,288 3,276 Other current assets.......................................... 4,539 3,343 3,042 ---------------- ----------- ------------- Total current assets.......................................... 110,789 89,460 94,213 Long-term marketable securities.................................. 10,925 24,517 15,157 Property, plant and equipment, net............................... 17,551 16,724 17,268 Other noncurrent assets.......................................... 6,933 9,158 8,201 ---------------- ----------- ------------- Total assets..................................................... $ 146,198 $ 139,859 $ 134,839 ================ =========== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable.............................................. $ 14,215 $ 11,010 $ 6,704 Other current liabilities...................................... 14,743 13,849 13,434 ---------------- ----------- ------------- Total current liabilities..................................... 28,958 24,859 20,138 Pension benefits liabilities..................................... 5,217 4,664 5,142 Other noncurrent liabilities..................................... 169 161 229 ---------------- ----------- ------------- Total liabilities.................................................. 34,344 29,684 25,509 ---------------- ----------- ------------- 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, 17,573,531, 17,521,272 and 17,568,084 shares issued in February 2006 and 2005 and August 2005, respectively)........................... 17,573 17,521 17,568 Capital in excess of stated value........................... 4,500 3,092 3,690 Retained earnings........................................... 184,290 180,700 183,444 Less treasury stock, (at cost, 6,048,448, 5,862,569 and 6,048,448 shares, respectively)........................ (96,547) (93,073) (96,547) Accumulated other comprehensive income, net................. 2,038 1,935 1,175 ---------------- ----------- ------------- Total shareholders' equity....................................... 111,854 110,175 109,330 ---------------- ----------- ------------- Total liabilities and shareholders' equity....................... $ 146,198 $ 139,859 $ 134,839 ================ =========== =============
LINDSAY MANUFACTURING CO. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX-MONTHS ENDED FEBRUARY 28, 2006 AND 2005 (UNAUDITED)
FEBRUARY FEBRUARY ($ IN THOUSANDS) 2006 2005 - ------------------------------------------------------------------------------ ------------ -------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings............................................................... $ 2,228 $ 775 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization......................................... 1,661 1,783 Amortization of marketable securities, net............................ 126 110 Loss on sale of property, plant and equipment......................... 30 - Provision for uncollectible accounts receivable....................... 36 53 Equity in net earnings of equity method investments................... (4) (230) Deferred income taxes................................................. (239) (332) Stock option tax expense.............................................. (24) - Stock-based compensation expense...................................... 741 - Other, net............................................................ (37) (50) Changes in assets and liabilities: Receivables, net...................................................... (6,448) (427) Inventories, net...................................................... (6,824) (8,914) Other current assets.................................................. (1,392) (521) Accounts payable, trade............................................... 7,503 1,425 Other current liabilities............................................. 1,223 (2,616) Current taxes payable................................................. (251) 351 Other noncurrent assets and liabilities............................... 292 2,528 ------------ -------------- Net cash used in operating activities...................................... (1,379) (6,065) ------------ -------------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment.................................. (1,772) (1,769) Sale of an equity investment............................................... 354 - Proceeds from sale of property, plant and equipment........................ 81 7 Purchases of marketable securities available-for-sale...................... - (1,841) Proceeds from maturities or sales of marketable securities available-for-sale....................................................... 5,113 12,360 ------------ -------------- Net cash provided by investing activities.................................. 3,776 8,757 ------------ -------------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock under option plan................... 93 208 Repurchases of common stock................................................ - (3,175) Dividends paid............................................................. (1,382) (1,284) ------------ -------------- Net cash used in financing activities...................................... (1,289) (4,251) ------------ -------------- ------------ -------------- Effect of exchange rate changes on cash.................................... 235 157 ------------ -------------- Net increase (decrease) in cash and cash equivalents....................... 1,343 (1,402) Cash and cash equivalents, beginning of period............................. 25,564 8,973 ------------ -------------- Cash and cash equivalents, end of period................................... $ 26,907 $ 7,571 ============ ==============
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