EX-99.1 2 c22469exv99w1.htm PRESS RELEASE exv99w1
 

EXHIBIT 99.1
(LINDSAY COPORATION LOGO)      2707 NO. 108TH ST. OMAHA, NE 68164 TEL: 402-829-6800 FAX: 402-829-6836
For further information, contact:
     
LINDSAY CORPORATION:
David Downing
SVP and CFO
402-827-6235
  HALLIBURTON INVESTOR RELATIONS:
Jeff Elliott or Geralyn DeBusk
972-458-8000
Lindsay Corporation Reports Fiscal 2008 First Quarter Results
OMAHA, Neb., December 20, 2007—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its fiscal 2008 first quarter ended November 30, 2007.
First Quarter Results
First quarter fiscal 2008 total revenues increased 47 percent to $75.9 million from $51.5 million for the year-ago period. Net earnings were $4.4 million or $0.36 per diluted share, compared with $1.8 million or $0.15 per diluted share, in the prior year’s first quarter. The quarter includes the results from Snoline, which was acquired in December 2006.
Total irrigation equipment revenues increased 49 percent to $56.5 million from $38.0 million in the prior fiscal year’s first quarter. Domestic irrigation revenues increased 34 percent, while international irrigation revenues improved 79 percent from the prior year’s quarter. Infrastructure revenues were $19.4 million compared, with $13.6 million in the prior year period, an increase of 43 percent.
Gross margin improved to 25.4 percent from 24.2 percent a year ago due to higher irrigation margins. Operating expenses of $12.8 million, an increase of $2.9 million in the first quarter, were 16.8 percent of sales, compared with 19.1 percent of sales in the prior year period. The increased spending was primarily due to the inclusion of Snoline and personnel related expenses. Operating income during the quarter was $6.5 million, compared with $2.6 million in the prior year period.
Rick Parod, president and chief executive officer, commented, “Although the primary selling season for domestic irrigation has not yet started, significant international irrigation revenue growth in the first quarter, along with higher agricultural commodity prices, provides a solid base in our irrigation segment for 2008. In addition, we are seeing international growth in our infrastructure segment.”
Lindsay’s backlog of unshipped orders at November 30, 2007 was $51.2 million compared, with $24.6 million at November 30, 2006. Irrigation backlog increased $16.3 million, while infrastructure backlog increased $10.3 million primarily on higher Barrier Systems backlog.
Shareholders’ equity at November 30, 2007 was $147.5 million or $12.50 per outstanding common share, compared with $123.7 million or $10.64 per outstanding common share at November 30, 2006.

 


 

Outlook
Parod added, “With the USDA forecast of record net farm income in 2007, we believe domestic demand for our irrigation products will be higher during this irrigation selling season. International demand is also expected to increase on the strength of higher agricultural commodity prices.”
Parod concluded, “We are focused on achieving growth in each of our segments organically and through acquisitions. During the period we acquired a product line which complements the Barrier Systems portfolio of infrastructure products. We will continue to leverage our financial flexibility to create shareholder value through a balance of organic growth opportunities, strategic acquisitions, share repurchases, and dividend payments.”
First-Quarter Conference Call
Lindsay’s fiscal 2008 first quarter 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 via the investor relations section of the Company’s Web site, www.lindsay.com. 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 including 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 manufactures and markets infrastructure products including movable barriers for lane management to reduce traffic congestion and improve safety through its wholly owned subsidiaries, Barrier Systems Inc. and Snoline S.P.A. In addition, the Company produces crash cushions and specialty barriers to improve motorist and highway worker safety, large diameter steel tubing, and provides outsourced manufacturing and production services for other companies. At November 30, 2007, Lindsay had approximately 11.8 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 at www.lindsay.com. For more information on the Company’s infrastructure products, visit www.barriersystemsinc.com and www.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. 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.

 


 

Lindsay Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three-months ended November 30, 2007 and 2006
                 
    (unaudited)  
    Three Months Ended  
    November     November  
(in thousands, except per share amounts)   2007     2006  
Operating revenues
  $ 75,928     $ 51,532  
Cost of operating revenues
    56,632       39,067  
 
           
Gross profit
    19,296       12,465  
 
           
 
               
Operating expenses:
               
Selling expense
    5,130       3,613  
General and administrative expense
    6,144       5,435  
Engineering and research expense
    1,506       806  
 
           
Total operating expenses
    12,780       9,854  
 
           
 
               
Operating income
    6,516       2,611  
 
               
Other income (expense):
               
Interest expense
    (599 )     (487 )
Interest income
    476       636  
Other income (expense), net
    114       (16 )
 
           
 
               
Earnings before income taxes
    6,507       2,744  
 
               
Income tax provision
    2,141       961  
 
           
 
               
Net earnings
  $ 4,366     $ 1,783  
 
           
 
               
Basic net earnings per share
  $ 0.37     $ 0.15  
 
           
 
               
Diluted net earnings per share
  $ 0.36     $ 0.15  
 
           
 
               
Average shares outstanding
    11,766       11,577  
Diluted effect of stock equivalents
    462       279  
 
           
Average shares outstanding assuming dilution
    12,228       11,856  
 
           
 
               
Cash dividends per share
  $ 0.070     $ 0.065  
 
           

 


 

Lindsay Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
November 30, 2007 and 2006 and August 31, 2007
                         
    (Unaudited)     (Unaudited)        
    November     November     August  
($ in thousands, except par values)   2007     2006     2007  
ASSETS
                       
Current Assets:
                       
Cash and cash equivalents
  $ 17,324     $ 19,699     $ 21,022  
Marketable securities
    8,207       21,792       27,591  
Receivables, net of allowance, $1,029, $696 and $946, respectively
    60,437       46,539       46,968  
Inventories, net
    54,964       34,656       41,099  
Deferred income taxes
    5,645             6,108  
Other current assets
    8,453       4,602       6,990  
 
                 
Total current assets
    155,030       127,288       149,778  
 
                       
Long-term marketable securities
          4,378        
Property, plant and equipment, net
    47,286       27,157       44,292  
Other intangible assets, net
    27,713       20,704       25,830  
Goodwill, net
    18,829       11,134       16,845  
Other noncurrent assets
    6,112       6,949       5,460  
 
                 
Total assets
  $ 254,970     $ 197,610     $ 242,205  
 
                 
 
                       
LIABILITIES AND SHAREHOLDERS’ EQUITY
                       
Current Liabilities:
                       
Accounts payable
  $ 24,664     $ 12,951     $ 18,367  
Current portion of long-term debt
    6,171       4,286       6,171  
Other current liabilities
    27,978       25,931       26,964  
 
                 
Total current liabilities
    58,813       43,168       51,502  
 
                       
Pension benefits liabilities
    5,426       5,047       5,384  
Long-term debt
    30,253       24,643       31,796  
Deferred income taxes
    10,036             9,860  
Other noncurrent liabilities
    2,952       1,042       2,635  
 
                 
Total liabilities
    107,480       73,900       101,177  
 
                 
 
                       
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, 17,795,683, 17,678,151 and 17,744,458 shares issued and outstanding in November 2007 and 2006 and August 2007, respectively)
    17,796       17,678       17,744  
Capital in excess of stated value
    12,924       7,667       11,734  
Retained earnings
    207,422       193,347       204,750  
Less treasury stock (at cost, 5,998,448, 6,048,448 and 5,998,448 shares in November 2007 and 2006 and August 2007, respectively)
    (95,749 )     (96,547 )     (95,749 )
Accumulated other comprehensive income, net
    5,097       1,565       2,549  
 
                 
Total shareholders’ equity
    147,490       123,710       141,028  
 
                 
Total liabilities and shareholders’ equity
  $ 254,970     $ 197,610     $ 242,205  
 
                 

 


 

Lindsay Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three-months ended November 30, 2007 and 2006
(unaudited)
                 
    November     November  
($ in thousands)   2007     2006  
CASH FLOWS FROM OPERATING ACTIVITIES:
               
Net earnings
  $ 4,366     $ 1,783  
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
               
Depreciation and amortization
    2,131       1,531  
Amortization of marketable securities premiums, net
    (4 )     18  
Gain on sale of property, plant and equipment
    (2 )     (17 )
Provision for uncollectible accounts receivable
    (68 )     10  
Deferred income taxes
    281       392  
Stock-based compensation expense
    572       431  
Other, net
    (30 )     78  
Changes in assets and liabilities:
               
Receivables, net
    (12,114 )     (8,415 )
Inventories, net
    (11,612 )     (7,775 )
Other current assets
    (983 )     (660 )
Accounts payable
    4,424       3,311  
Other current liabilities
    161       (637 )
Current taxes payable
    604       (1,277 )
Other noncurrent assets and liabilities
    (2,873 )     (628 )
 
           
Net cash used in operating activities
    (15,147 )     (11,855 )
 
           
 
               
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Purchases of property, plant and equipment
    (4,502 )     (1,232 )
Proceeds from sale of property, plant and equipment
    5       16  
Acquisition of business
    (3,520 )      
Purchases of marketable securities available-for-sale
    (13,860 )     (44,245 )
Proceeds from maturities of marketable securities available-for-sale
    33,265       34,060  
 
           
Net cash provided by (used in) investing activities
    11,388       (11,401 )
 
           
 
               
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Proceeds from issuance of common stock under stock option plan
    307       1,247  
Principal payments on long-term debt
    (1,543 )     (1,071 )
Excess tax benefits from stock-based compensation
    373       93  
Dividends paid
    (826 )     (755 )
 
           
Net cash used in financing activities
    (1,689 )     (486 )
 
           
 
               
Effect of exchange rate changes on cash
    1,750       97  
 
           
Net decrease in cash and cash equivalents
    (3,698 )     (23,645 )
Cash and cash equivalents, beginning of period
    21,022       43,344  
 
           
Cash and cash equivalents, end of period
  $ 17,324     $ 19,699