10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 28, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-13419

Lindsay Corporation

(Exact name of registrant as specified in its charter)

Delaware	47-0554096
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
18135 Burke Street, Suite 100, Omaha, Nebraska	68022
(Address of principal executive offices)	(Zip Code)

402‑829-6800

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 par value	LNN	New York Stock Exchange, Inc.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	☒	Accelerated filer	☐
Non‑accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of April 1, 2023, 11,007,905 shares of the registrant’s common stock were outstanding.

Lindsay Corporation

INDEX FORM 10-Q

		Page
Part I – FINANCIAL INFORMATION		3
	ITEM 1 – Financial Statements	3
	Condensed Consolidated Statements of Earnings for the three and six months ended February 28, 2023 and February 28, 2022	3
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended February 28, 2023 and February 28, 2022	4
	Condensed Consolidated Balance Sheets as of February 28, 2023, February 28, 2022, and August 31, 2022	5
	Condensed Consolidated Statements of Shareholders’ Equity for the three and six months ended February 28, 2023 and February 28, 2022	6
	Condensed Consolidated Statements of Cash Flows for the six months ended February 28, 2023 and February 28, 2022	8
	Notes to the Condensed Consolidated Financial Statements	9
	ITEM 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
	ITEM 3 – Quantitative and Qualitative Disclosures about Market Risk	25
	ITEM 4 – Controls and Procedures	26
Part II – OTHER INFORMATION		27
	ITEM 1 – Legal Proceedings	27
	ITEM 1A – Risk Factors	27
	ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds	27
	ITEM 3 – Defaults Upon Senior Securities	27
	ITEM 4 – Mine Safety Disclosures	27
	ITEM 5 – Other Information	27
	ITEM 6 – Exhibits	28
SIGNATURES		29

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Part I – FINANCIAL INFORMATION

ITEM 1 - Financial Statements

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

	Three months ended						Six months ended
($ and shares in thousands, except per share amounts)	February 28, 2023			February 28, 2022			February 28, 2023			February 28, 2022
Operating revenues	$	166,241		$	200,137		$	342,400		$	366,288
Cost of operating revenues		111,983			157,193			235,122			285,907
Gross profit		54,258			42,944			107,278			80,381
Operating expenses:
Selling expense		8,733			7,932			18,410			15,922
General and administrative expense		13,739			13,022			28,176			25,901
Engineering and research expense		4,521			3,652			8,829			6,859
Total operating expenses		26,993			24,606			55,415			48,682
Operating income		27,265			18,338			51,863			31,699
Other income (expense):
Interest expense		(1,038	)		(1,176	)		(1,947	)		(2,339	)
Interest income		490			160			865			338
Other income (expense), net		(984	)		1,882			(1,043	)		(1,018	)
Total other income (expense)		(1,532	)		866			(2,125	)		(3,019	)
Earnings before income taxes		25,733			19,204			49,738			28,680
Income tax expense		7,681			4,638			13,469			6,213
Net earnings	$	18,052		$	14,566		$	36,269		$	22,467
Earnings per share:
Basic	$	1.64		$	1.33		$	3.30		$	2.05
Diluted	$	1.63		$	1.32		$	3.28		$	2.04
Shares used in computing earnings per share:
Basic		11,007			10,974			10,998			10,950
Diluted		11,063			11,014			11,068			11,020
Cash dividends declared per share	$	0.34		$	0.33		$	0.68		$	0.66

See accompanying notes to condensed consolidated financial statements.

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LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three months ended					Six months ended
($ in thousands)	February 28, 2023		February 28, 2022			February 28, 2023			February 28, 2022
Net earnings	$	18,052	$	14,566		$	36,269		$	22,467
Other comprehensive income (loss):
Defined benefit pension plan adjustment, net of tax		40		48			80			97
Foreign currency translation adjustment, net of hedging activities and tax		1,308		1,997			(878	)		(1,353	)
Unrealized gain (loss) on marketable securities, net of tax		71		(105	)		72			(162	)
Total other comprehensive income (loss), net of tax expense (benefit) of $52, ($21), ($417), and ($19) respectively		1,419		1,940			(726	)		(1,418	)
Total comprehensive income	$	19,471	$	16,506		$	35,543		$	21,049

See accompanying notes to condensed consolidated financial statements.

- 4 -

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

($ and shares in thousands, except par values)	February 28, 2023			February 28, 2022			August 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	97,675		$	68,951		$	105,048
Marketable securities		8,763			24,934			11,460
Receivables, net of allowance of $4,959, $3,726, and $4,118,    respectively		167,007			134,694			138,200
Inventories, net		178,703			187,328			193,776
Other current assets, net		27,973			34,350			28,617
Total current assets		480,121			450,257			477,101
Property, plant, and equipment:
Cost		246,396			234,183			240,981
Less accumulated depreciation		(152,558	)		(141,892	)		(146,509	)
Property, plant, and equipment, net		93,838			92,291			94,472
Intangibles, net		17,329			19,311			18,208
Goodwill		67,409			67,679			67,130
Operating lease right-of-use assets		17,984			16,724			19,181
Deferred income tax assets		9,518			5,352			9,313
Other noncurrent assets		22,881			24,970			25,248
Total assets	$	709,080		$	676,584		$	710,653
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	52,998		$	74,345		$	60,036
Current portion of long-term debt		224			220			222
Other current liabilities		79,566			86,837			100,684
Total current liabilities		132,788			161,402			160,942
Pension benefits liabilities		4,733			5,567			4,892
Long-term debt		115,253			115,428			115,341
Operating lease liabilities		18,659			17,170			19,810
Deferred income tax liabilities		702			783			1,054
Other noncurrent liabilities		14,673			19,696			15,256
Total liabilities		286,808			320,046			317,295
Shareholders' equity:
Preferred stock of $1 par value - authorized 2,000 shares; no shares issued and outstanding		—			—			—
Common stock of $1 par value - authorized 25,000 shares;    19,091, 19,061, and 19,063 shares issued, respectively		19,091			19,061			19,063
Capital in excess of stated value		94,834			90,711			94,006
Retained earnings		607,784			543,355			579,000
Less treasury stock - at cost, 8,083 shares		(277,238	)		(277,238	)		(277,238	)
Accumulated other comprehensive loss, net		(22,199	)		(19,351	)		(21,473	)
Total shareholders' equity		422,272			356,538			393,358
Total liabilities and shareholders' equity	$	709,080		$	676,584		$	710,653

See accompanying notes to condensed consolidated financial statements.

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Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
($ and shares in thousands, except per share amounts)
(Unaudited)
	Shares of common stock		Shares of treasury stock		Common stock		Capital in excess of stated value			Retained earnings			Treasury stock			Accumulated other comprehensive loss, net			Total shareholders’ equity
Balance at August 31, 2021		18,991		8,083	$	18,991	$	86,495		$	528,130		$	(277,238	)	$	(17,933	)	$	338,445
Comprehensive income:
Net earnings		—		—		—		—			22,467			—			—			22,467
Other comprehensive loss		—		—		—		—			—			—			(1,418	)		(1,418	)
Total comprehensive income		—		—		—		—			—			—			—			21,049
Cash dividends ($.66) per share		—		—		—		—			(7,242	)		—			—			(7,242	)
Issuance of common shares under share compensation plans, net		70		—		70		1,805			—			—			—			1,875
Share-based compensation expense		—		—		—		2,411			—			—			—			2,411
Balance at February 28, 2022		19,061		8,083	$	19,061	$	90,711		$	543,355		$	(277,238	)	$	(19,351	)	$	356,538
Balance at August 31, 2022		19,063		8,083	$	19,063	$	94,006		$	579,000		$	(277,238	)	$	(21,473	)	$	393,358
Comprehensive income:
Net earnings		—		—		—		—			36,269			—			—			36,269
Other comprehensive loss		—		—		—		—			—			—			(726	)		(726	)
Total comprehensive income		—		—		—		—			—			—			—			35,543
Cash dividends ($.68) per share		—		—		—		—			(7,485	)		—			—			(7,485	)
Issuance of common shares under share compensation plans, net		28		—		28		(2,261	)		—			—			—			(2,233	)
Share-based compensation expense		—		—		—		3,089			—			—			—			3,089
Balance at February 28, 2023		19,091		8,083	$	19,091	$	94,834		$	607,784		$	(277,238	)	$	(22,199	)	$	422,272
See accompanying notes to condensed consolidated financial statements.

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Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
($ and shares in thousands, except per share amounts)
(Unaudited)
	Shares of common stock		Shares of treasury stock		Common stock		Capital in excess of stated value		Retained earnings			Treasury stock			Accumulated other comprehensive loss, net			Total shareholders’ equity
Balance at November 30, 2021		19,056		8,083	$	19,056	$	89,006	$	532,410		$	(277,238	)	$	(21,291	)	$	341,943
Comprehensive income:
Net earnings		—		—		—		—		14,566			—			—			14,566
Other comprehensive income		—		—		—		—		—			—			1,940			1,940
Total comprehensive income		—		—		—		—		—			—			—			16,506
Cash dividends ($.33) per share		—		—		—		—		(3,621	)		—			—			(3,621	)
Issuance of common shares under share compensation plans, net		5		—		5		516		—			—			—			521
Share-based compensation expense		—		—		—		1,189		—			—			—			1,189
Balance at February 28, 2022		19,061		8,083	$	19,061	$	90,711	$	543,355		$	(277,238	)	$	(19,351	)	$	356,538
Balance at November 30, 2022		19,090		8,083	$	19,090	$	93,079	$	593,475		$	(277,238	)	$	(23,618	)	$	404,788
Comprehensive income:
Net earnings		—		—		—		—		18,052			—			—			18,052
Other comprehensive income		—		—		—		—		—			—			1,419			1,419
Total comprehensive income		—		—		—		—		—			—			—			19,471
Cash dividends ($0.34) per share				—		—		—		(3,743	)		—			—			(3,743	)
Issuance of common shares under share compensation plans, net		1		—		1		139		—			—			—			140
Share-based compensation expense		—		—		—		1,616		—			—			—			1,616
Balance at February 28, 2023		19,091		8,083	$	19,091	$	94,834	$	607,784		$	(277,238	)	$	(22,199	)	$	422,272
See accompanying notes to condensed consolidated financial statements.

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LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six months ended
($ in thousands)	February 28, 2023			February 28, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	36,269		$	22,467
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization		9,695			9,912
Provision for uncollectible accounts receivable		834			322
Deferred income taxes		(185	)		3,052
Share-based compensation expense		3,089			2,411
Unrealized foreign currency transaction loss (gain)		878			(111	)
Other, net		354			627
Changes in assets and liabilities:
Receivables		(28,707	)		(41,286	)
Inventories		14,014			(42,412	)
Other current assets		1,635			(2,541	)
Accounts payable		(6,178	)		28,757
Other current liabilities		(25,553	)		(8,317	)
Other noncurrent assets and liabilities		1,742			(8,732	)
Net cash provided by (used in) operating activities		7,887			(35,851	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(7,222	)		(6,926	)
Purchases of marketable securities		—			(18,468	)
Proceeds from maturities of marketable securities		2,725			12,752
Other investing activities, net		(1,214	)		(2,974	)
Net cash used in investing activities		(5,711	)		(15,616	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		—			2,821
Common stock withheld for payroll tax obligations		(2,471	)		(1,181	)
Proceeds from employee stock purchase plan		238			235
Principal payments on long-term debt		(110	)		(108	)
Dividends paid		(7,485	)		(7,242	)
Net cash used in financing activities		(9,828	)		(5,475	)
Effect of exchange rate changes on cash and cash equivalents		279			(1,214	)
Net change in cash and cash equivalents		(7,373	)		(58,156	)
Cash and cash equivalents, beginning of period		105,048			127,107
Cash and cash equivalents, end of period	$	97,675		$	68,951

See accompanying notes to condensed consolidated financial statements.

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LINDSAY CORPORATION AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 – Basis of Presentation

The condensed consolidated financial statements are presented in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and do not include all of the disclosures normally required by U.S. generally accepted accounting principles (“U.S. GAAP”) as contained in Lindsay Corporation’s (the “Company”) Annual Report on Form 10-K. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended August 31, 2022.

In the opinion of management, the condensed consolidated financial statements of the Company reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and the results of operations and cash flows for the periods presented. The results for interim periods are not necessarily indicative of trends or results expected by the Company for a full year. The condensed consolidated financial statements were prepared using U.S. GAAP. These principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from these estimates.

Recent Accounting Guidance Adopted

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting and related disclosure requirements for income taxes. The Company adopted this standard in the first quarter of its fiscal 2022. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements.

Recent Accounting Guidance Not Yet Adopted

In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs, which requires annual and interim disclosures for entities that finance its purchases with supplier finance programs. These amendments are effective for the Company beginning in its fiscal 2024, except for the amendment on rollforward information, which is effective for the Company beginning in its fiscal 2025. The adoption of this ASU is not expected to have a material impact on its condensed consolidated financial statements.

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Note 2 – Revenue Recognition

Disaggregation of Revenue

A breakout by segment of revenue recognized over time versus at a point in time for the three and six months ended February 28, 2023 and 2022 is as follows:

	Three months ended						Three months ended
	February 28, 2023						February 28, 2022
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	141,528	$	14,697	$	156,225	$	175,251	$	16,010	$	191,261
Over time		6,248		1,657		7,905		5,508		1,467		6,975
Revenue from the contracts with customers		147,776		16,354		164,130		180,759		17,477		198,236
Lease revenue		—		2,111		2,111		—		1,901		1,901
Total operating revenues	$	147,776	$	18,465	$	166,241	$	180,759	$	19,378	$	200,137
	Six months ended						Six months ended
	February 28, 2023						February 28, 2022
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	287,245	$	34,927	$	322,172	$	315,383	$	30,723	$	346,106
Over time		12,614		3,111		15,725		11,284		2,209		13,493
Revenue from the contracts with customers		299,859		38,038		337,897		326,667		32,932		359,599
Lease revenue		—		4,503		4,503		—		6,689		6,689
Total operating revenues	$	299,859	$	42,541	$	342,400	$	326,667	$	39,621	$	366,288

Further disaggregation of revenue is disclosed in the Note 13 – Industry Segment Information.

For contracts with an initial length longer than twelve months, the unsatisfied performance obligations were $1.8 million at February 28, 2023.

Contract Balances

Contract assets arise when recorded revenue for a contract exceeds the amounts billed under the terms of such contract. Contract liabilities arise when billed amounts exceed revenue recorded. Amounts are billable to customers upon various measures of performance, including achievement of certain milestones and completion of specified units of completion of the contract. At February 28, 2023, February 28, 2022, and August 31, 2022, contract assets amounted to $1.1 million, $1.1 million, and $0.9 million, respectively. These amounts are included within other current assets on the condensed consolidated balance sheets.

Contract liabilities include advance payments from customers and billings in excess of delivery of performance obligations. At February 28, 2023, February 28, 2022, and August 31, 2022, contract liabilities amounted to $17.9 million, $39.7 million, and $30.6 million, respectively. Contract liabilities are included within other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets. During the Company’s six months ended February 28, 2023 and 2022, the Company recognized $25.0 million and $25.6 million of revenue that were included in the liabilities as of August 31, 2022 and 2021 respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter.

Note 3 – Net Earnings per Share

Basic earnings per share is calculated on the basis of weighted average outstanding common shares. Diluted earnings per share is calculated on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, restricted stock unit awards and other dilutive securities.

- 10 -

The following table shows the computation of basic and diluted net earnings per share for the three and six months ended February 28, 2023 and 2022:

	Three months ended				Six months ended
($ and shares in thousands, except per share amounts)	February 28, 2023		February 28, 2022		February 28, 2023		February 28, 2022
Numerator:
Net earnings	$	18,052	$	14,566	$	36,269	$	22,467
Denominator:
Weighted average shares outstanding		11,007		10,974		10,998		10,950
Diluted effect of stock awards		56		40		70		70
Weighted average shares outstanding assuming    dilution		11,063		11,014		11,068		11,020
Basic net earnings per share	$	1.64	$	1.33	$	3.30	$	2.05
Diluted net earnings per share	$	1.63	$	1.32	$	3.28	$	2.04

Certain stock options and restricted stock units were excluded from the computation of diluted net earnings per share because their effect would have been anti-dilutive. Performance stock units are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. The number of securities excluded from the computation of earnings per share because their effect would have been anti-dilutive was not significant for the three and six months ended February 28, 2023 and 2022.

Note 4 – Income Taxes

The Company recorded income tax expense of $7.7 million and $4.6 million for the three months ended February 28, 2023 and 2022, respectively, and recorded income tax expense of $13.5 million and $6.2 million for the six months ended February 28, 2023 and 2022, respectively.

It is the Company’s policy to report income tax expense for interim periods using an estimated annual effective income tax rate. The estimated annual effective income tax rate was 28.2 percent and 25.5 percent for the six months ended February 28, 2023 and 2022, respectively. The increase in the estimated annual effective income tax rate relates primarily to the change in earnings mix among foreign operations and the finalization of U.S. tax regulations related to foreign tax credits in calendar 2022.

The tax effects of significant or unusual items are not considered in the estimated annual effective income tax rate. The tax effects of such discrete events are recognized in the interim period in which the events occur. The Company recorded discrete items resulting in an income tax benefit of $0.6 million and $1.1 million for the six months ended February 28, 2023 and 2022, respectively. The discrete items recorded primarily relate to the vesting of share-based compensation awards.

Note 5 – Inventories

Inventories consisted of the following as of February 28, 2023, February 28, 2022, and August 31, 2022:

($ in thousands)	February 28, 2023			February 28, 2022			August 31, 2022
Raw materials and supplies	$	89,968		$	86,010		$	93,469
Work in process		9,837			11,620			12,603
Finished goods and purchased parts, net		103,067			96,724			110,022
Total inventory value before LIFO adjustment		202,872			194,354			216,094
Less adjustment to LIFO value		(24,169	)		(7,026	)		(22,318	)
Inventories, net	$	178,703		$	187,328		$	193,776

Of the $178.7 million, $187.3 million, and $193.8 million of net inventories at February 28, 2023, February 28, 2022, and August 31, 2022, respectively, $47.2 million, $53.5 million, and $55.5 million, respectively, was valued on the last-in, first-out ("LIFO") basis, and $131.5 million, $133.9 million, and $138.3 million, respectively, was valued on the first-in, first-out ("FIFO") or average cost methods.

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Note 6 – Long-Term Debt

The following table sets forth the outstanding principal balances of the Company’s long-term debt as of the dates shown:

($ in thousands)	February 28, 2023			February 28, 2022			August 31, 2022
Series A Senior Notes	$	115,000		$	115,000		$	115,000
Elecsys Series 2006A Bonds		822			1,042			931
Total debt		115,822			116,042			115,931
Less current portion		(224	)		(220	)		(222	)
Less unamortized debt issuance costs		(345	)		(394	)		(368	)
Total long-term debt	$	115,253		$	115,428		$	115,341

Principal payments on the debt are due as follows:

Due within	$ in thousands
1 year	$	224
2 years		228
3 years		232
4 years		138
Thereafter		115,000
	$	115,822

Note 7 – Fair Value Measurements

The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of February 28, 2023, February 28, 2022, and August 31, 2022. There were no transfers between any levels for the periods presented.

	February 28, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	97,675	$	—	$	—	$	97,675
Marketable securities:
Corporate bonds		—		6,976		—		6,976
U.S. treasury securities		—		1,787		—		1,787
Derivative asset		—		3,520		—		3,520
	February 28, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	68,951	$	—	$	—	$	68,951
Marketable securities:
Corporate bonds		—		20,322		—		20,322
U.S. treasury securities		—		4,612		—		4,612
	August 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	105,048	$	—	$	—	$	105,048
Marketable securities:
Corporate bonds		—		9,668		—		9,668
U.S. treasury securities		—		1,792		—		1,792
Derivative asset		—		5,505		—		5,505

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The Company’s investment in marketable securities consists of United States treasury bonds and investment grade corporate bonds. The marketable securities are classified as available-for-sale and are carried at fair value with the change in unrealized gains and losses reported as a separate component on the condensed consolidated statements of comprehensive income until realized. The Company determines fair value using data points that are observable, such as quoted prices and interest rates. The amortized cost of the investments approximates fair value. Investment income is recorded within other income (expense) on the condensed consolidated statements of earnings. As of February 28, 2023, approximately 64% of the Company’s marketable securities investments mature within one year and 36% mature within one to two years.

The Company enters into derivative instrument agreements to manage risk in connection with changes in foreign currency. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit and does not enter into derivative instrument agreements for trading or speculative purposes. The fair values are based on inputs other than quoted prices that are observable for the asset or liability and are determined by standard calculations and models that use readily observable market parameters. These inputs include foreign currency exchange rates and interest rates. Industry standard data providers are the primary source for forward and spot rate information for both interest rates and foreign currency exchange rates.

On March 28, 2022, the Company entered into a fixed-to-fixed cross currency swap with a notional amount of $50.0 million, or €45.6 million, that is set to mature on March 30, 2027. The Company elected the spot method for designating this contract as a net investment hedge. Changes in the fair value of this contract are reported in accumulated other comprehensive loss on the condensed consolidated balance sheets. The fair value of this contract as of February 28, 2023, is disclosed in the table above, and is recorded within other noncurrent assets on the condensed consolidated balance sheets.

There were no required fair value adjustments for assets and liabilities measured at fair value on a non-recurring basis for the six months ended February 28, 2023 or 2022.

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Note 8 – Commitments and Contingencies

In the ordinary course of its business operations, the Company enters into arrangements that obligate it to make future payments under contracts such as lease agreements. Additionally, the Company is involved, from time to time, in commercial litigation, employment disputes, administrative proceedings, business disputes and other legal proceedings. The Company has established accruals for certain proceedings based on an assessment of probability of loss. The Company believes that any such currently-pending proceedings are either covered by insurance or would not have a material effect on the business or its consolidated financial statements if decided in a manner that is unfavorable to the Company. Such proceedings are exclusive of environmental remediation matters which are discussed separately below.

Infrastructure Products

The Company is currently defending a number of product liability lawsuits arising out of vehicle collisions with highway barriers incorporating the Company’s X-Lite® end terminal. Despite the September 2018 reversal of a sizable judgment against a competitor, the Company expects that the significant attention brought to the infrastructure products industry by the original judgment may lead to additional lawsuits being filed against the Company and others in the industry.

The Company, certain of its subsidiaries, and certain third parties which originally designed the X-Lite end terminal have also been named in a lawsuit filed on June 9, 2020 in the Circuit Court of Cole County, Missouri by Missouri Highways and Transportation Commission (“MHTC”). MHTC alleges, among other things, that the X-Lite end terminal was defectively designed and failed to perform as designed, intended, and advertised, leading to MHTC’s removal and replacement of X-Lite end terminals from Missouri’s roadways. MHTC alleges strict liability (defective design and failure to warn), negligence, breach of express warranties, breach of implied warranties (merchantability and fitness for a particular purpose), fraud, and public nuisance. MHTC seeks compensatory damages, interest, attorneys’ fees, and punitive damages.

The Company believes it has meritorious factual and legal defenses to each of the lawsuits discussed above and is prepared to vigorously defend its interests. Based on the information currently available to the Company, the Company does not believe that a loss is probable in any of these lawsuits; therefore, no accrual has been included in the Company’s consolidated financial statements. While it is possible that a loss may be incurred, the Company is unable to estimate a range of potential loss due to the complexity and current status of these lawsuits. However, the Company maintains insurance coverage to mitigate the impact of adverse exposures in these lawsuits and does not expect that these lawsuits will have a material adverse effect on its business or its consolidated financial statements.

In June 2019, the Company was informed by letter that the Department of Justice, Civil Division and U.S. Attorney’s Office for the Northern District of New York, with the assistance of the Department of Transportation, Office of Inspector General, are conducting an investigation of the Company relating to the Company’s X-Lite end terminal and potential violations of the federal civil False Claims Act. Depending on the outcome of this matter, there could be a material adverse effect on the Company’s business or its consolidated financial statements. Given the current posture of the matter, the Company is unable to estimate a range of potential loss, if any, or to express an opinion regarding the ultimate outcome.

Environmental Remediation

In previous years, the Company committed to a plan to remediate environmental contamination of the groundwater at and adjacent to its Lindsay, Nebraska facility (the “site”). The current estimated aggregate accrued cost of $13.1 million is based on consideration of remediation options which the Company believes could be successful in meeting the long-term regulatory requirements of the site. The Company submitted a revised remedial alternatives evaluation report to the U.S. Environmental Protection Agency (“EPA”) and the Nebraska Department of Environment and Energy (the “NDEE”) in August 2020 to review remediation alternatives and proposed plans for the site. While the proposed remediation plan is preliminary and has not been approved by the EPA or the NDEE, they have recently approved an in situ thermal remediation pilot study to be conducted by the Company at a specific location on the site. The Company commenced implementation of the pilot program in the second half of calendar 2022 and expects to complete the pilot program in calendar 2023. Of the total liability as of February 28, 2023, $10.1 million was calculated on a discounted basis using a discount rate of 1.2%, which represents a risk-free rate. This discounted portion of the liability amounts to $11.4 million on an undiscounted basis.

The Company accrues the anticipated cost of investigation and remediation when the obligation is probable and can be reasonably estimated. While a definitive plan has not been formally approved by the EPA, the Company believes the current accrual is a good faith estimate of the long-term cost of remediation at this site; however, the estimate of costs and their timing could change as a result of a number of factors, including but not limited to (1) EPA input on the proposed remediation plan and any changes which the EPA may subsequently require, (2) effectiveness of the in situ thermal pilot remediation pilot study, (3) refinement of cost estimates and length of time required to complete remediation and post-remediation operations and maintenance, (4) effectiveness of the technology chosen in remediation of the site as well as changes in technology that may be available in the future, and (5) unforeseen circumstances existing at the site. As a result of these factors, the actual amount of costs incurred by the Company in connection with the remediation of contamination of its Lindsay, Nebraska site

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could exceed the amounts accrued for this expense at this time. While any revisions could be material to the operating results of any fiscal quarter or fiscal year, the Company does not expect such additional expenses would have a material adverse effect on its liquidity or financial condition.

The following table summarizes the environmental remediation liability classifications included in the condensed consolidated balance sheets as of February 28, 2023, February 28, 2022, and August 31, 2022:

($ in thousands)	February 28, 2023		February 28, 2022		August 31, 2022
Other current liabilities	$	3,097	$	777	$	4,179
Other noncurrent liabilities		9,975		15,155		10,967
Total environmental remediation liabilities	$	13,072	$	15,932	$	15,146

Note 9 – Warranties

The following table provides the changes in the Company’s product warranties:

	Three months ended						Six months ended
($ in thousands)	February 28, 2023			February 28, 2022			February 28, 2023			February 28, 2022
Product warranty accrual balance, beginning of period	$	13,602		$	12,379		$	14,080		$	12,736
Liabilities accrued for warranties during the period		2,888			1,825			4,128			4,219
Warranty claims paid during the period		(2,318	)		(1,250	)		(4,036	)		(4,001	)
Changes in estimates		-			(136	)		-			(136	)
Product warranty accrual balance, end of period	$	14,172		$	12,818		$	14,172		$	12,818

Note 10 – Share-Based Compensation

The Company’s current share-based compensation plans, approved by the stockholders of the Company, provides for awards of stock options, restricted shares, restricted stock units (“RSUs”), stock appreciation rights, performance shares, and performance stock units (“PSUs”) to employees and non-employee directors of the Company. The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. Share-based compensation expense was $1.7 million and $1.3 million for the three months ended February 28, 2023 and 2022, respectively, and $3.3 million and $2.5 million for the six months ended February 28, 2023 and 2022, respectively.

Note 11 – Other Current Liabilities

($ in thousands)	February 28, 2023		February 28, 2022		August 31, 2022
Other current liabilities:
Contract liabilities	$	16,782	$	38,454	$	29,494
Compensation and benefits		16,490		15,212		23,148
Warranties		14,172		12,818		14,080
Tax related liabilities		9,044		1,532		7,820
Dealer related liabilities		8,969		4,616		8,396
Accrued environmental liabilities		3,097		777		4,179
Operating lease liabilities		3,069		3,428		3,159
Deferred revenue - lease		1,223		1,031		1,064
Accrued insurance		1,049		1,119		1,193
Other		5,671		7,850		8,151
Total other current liabilities	$	79,566	$	86,837	$	100,684

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Note 12 – Share Repurchases

There were no shares repurchased during the three or six months ended February 28, 2023 and 2022 under the Company’s share repurchase program. The remaining amount available under the repurchase program was $63.7 million as of February 28, 2023.

Note 13 – Industry Segment Information

The Company manages its business activities in two reportable segments: irrigation and infrastructure. The Company evaluates the performance of its reportable segments based on segment revenues, gross profit and operating income, with operating income for segment purposes excluding unallocated corporate general and administrative expenses, interest income, interest expense, other income and expenses and income taxes. Operating income for segment purposes includes general and administrative expenses, selling expenses, engineering and research expenses and other overhead charges directly attributable to the segment. There are no inter-segment sales included in the amounts disclosed. The Company had no single customer who represented 10 percent or more of its total revenues during the three or six months ended February 28, 2023 or 2022.

Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move and hose reel irrigation systems and large diameter steel tubing as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial internet of things, or “IIoT”, solutions. The irrigation reporting segment consists of one operating segment.

Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment. The infrastructure reporting segment consists of one operating segment.

	Three months ended						Six months ended
($ in thousands)	February 28, 2023			February 28, 2022			February 28, 2023			February 28, 2022
Operating revenues:
Irrigation:
North America	$	90,354		$	100,730		$	174,288		$	179,705
International		57,422			80,029			125,571			146,962
Irrigation total		147,776			180,759			299,859			326,667
Infrastructure		18,465			19,378			42,541			39,621
Total operating revenues	$	166,241		$	200,137		$	342,400		$	366,288
Operating income:
Irrigation	$	32,820		$	24,734		$	61,461		$	41,946
Infrastructure		2,019			324			5,391			3,090
Corporate		(7,574	)		(6,720	)		(14,989	)		(13,337	)
Total operating income		27,265			18,338			51,863			31,699
Interest and other expense, net		(1,532	)		866			(2,125	)		(3,019	)
Earnings before income taxes	$	25,733		$	19,204		$	49,738		$	28,680

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ITEM 2 ‑ Management's Discussion and Analysis of Financial Condition and Results of Operations

Concerning Forward‑Looking Statements

This Quarterly Report on Form 10-Q contains not only historical information, but also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical are forward-looking and reflect information concerning possible or assumed future results of operations and planned financing of the Company. In addition, forward-looking statements may be made orally or in press releases, conferences, reports, on the Company's web site, or otherwise, in the future by or on behalf of the Company. When used by or on behalf of the Company, the words “expect,” “anticipate,” “estimate,” “believe,” “intend,” “will,” “plan,” “predict,” “project,” “outlook,” “could,” “may,” “should” or similar expressions generally identify forward-looking statements. The entire section entitled “Executive Overview and Outlook” should be considered forward-looking statements. 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.

Forward-looking statements involve a number of risks and uncertainties, including but not limited to those discussed in the “Risk Factors” section in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2022. Readers should not place undue reliance on any forward-looking statement and should recognize that the statements are predictions of future results or conditions, which may not occur as anticipated. Actual results or conditions could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described herein and in the Company’s other public filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2022, as well as other risks and uncertainties not now anticipated. The risks and uncertainties described herein and in the Company’s other public filings are not exclusive and further information concerning the Company and its businesses, including factors that potentially could materially affect the Company's financial results, may emerge from time to time. Except as required by law, the Company assumes no obligation to update forward-looking statements to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

COVID-19 Impact

In March 2020, the World Health Organization declared coronavirus (COVID-19) a global pandemic. COVID-19 has had a limited impact on the Company’s manufacturing operations to date. While the Company implemented new procedures to protect the health and well-being of employees and customers, costs associated with these procedures have not been material. In addition, the pandemic has not had a material adverse effect on demand for the Company’s irrigation or infrastructure products; however, the COVID-19 pandemic did result in a slowdown of road construction activity and delays in certain project implementations. As pandemic conditions improved and economic activity increased, the Company experienced a number of supply chain challenges including increased lead times and limited availability of certain components, significant raw material inflation, and labor and logistics constraints.

The ongoing effects of the COVID-19 pandemic on the Company’s business, results of operations, or cash flows in future periods remain uncertain and will depend on numerous evolving factors that the Company may not be able to accurately predict or effectively respond to, including, without limitation: the duration and scope of any outbreak; the transmissibility and severity of new variants of COVID-19; actions taken by governments, businesses, and individuals in response to any outbreak; the effect on economic activity and actions taken in response; the effect on customers and their demand for the Company’s products and services; and the Company’s ability to manufacture, sell, and service its products, including without limitation as a result of supply chain challenges, facility closures, social distancing, restrictions on travel, fear or anxiety by the populace, and shelter-in-place orders.

Accounting Policies

In preparing the Company’s condensed consolidated financial statements in conformity with U.S. GAAP, management must make a variety of decisions which impact the reported amounts and the related disclosures. These decisions include the selection of the appropriate accounting principles to be applied and the assumptions on which to base accounting estimates. In making these decisions, management applies its judgment based on its understanding and analysis of the relevant circumstances and the Company’s historical experience.

The Company’s accounting policies that are most important to the presentation of its results of operations and financial condition, and which require the greatest use of judgments and estimates by management, are designated as its critical accounting policies. See discussion of the Company’s critical accounting policies under Item 7 in the Company’s Annual Report on Form 10-K for the Company’s fiscal year ended August 31, 2022. Management periodically re-evaluates and

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adjusts its critical accounting policies as circumstances change. There were no significant changes in the Company’s critical accounting policies during the six months ended February 28, 2023.

Recent Accounting Guidance

See Note 1 – Basis of Presentation and the disclosure therein of recently adopted accounting guidance to the condensed consolidated financial statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q.

Executive Overview and Outlook

Operating revenues for the three months ended February 28, 2023 were $166.2 million, a decrease of 17 percent compared to $200.1 million for the three months ended February 28, 2022. Irrigation segment revenues decreased 18 percent to $147.8 million and infrastructure segment revenues decreased 5 percent to $18.5 million. Net earnings for the three months ended February 28, 2023 were $18.1 million, or $1.63 per diluted share, compared to net earnings of $14.6 million, or $1.32 per diluted share, for the three months ended February 28, 2022.

The primary drivers for the Company’s irrigation segment are the need for irrigated agricultural crop production, which is tied to population growth and the attendant need for expanded food production, and the need to use water resources efficiently. These drivers are affected by a number of factors, including the following:

•Agricultural commodity prices – As of February 2023, U.S. corn prices have increased approximately 35 percent and U.S. soybean prices have increased approximately 8 percent from February 2022. Higher commodity prices are being sustained by constrained supply levels globally coupled with higher demand. Expanding drought conditions in various regions of the world and the continued conflict between Ukraine and Russia has put additional pressure on the supply of agricultural commodities, further increasing corn, wheat and soybean prices.

•Net farm income – As of February 2023, the U.S. Department of Agriculture (the “USDA”) estimated U.S. 2023 net farm income to be $136.9 billion, a decrease of 15.9 percent from the USDA’s estimated U.S. 2022 net farm income of $162.7 billion. Most of this projected decrease is coming from a reduction in government support payments while cash receipts for crops is projected to decrease by 3.1 percent. Following record net farm income in 2022, projected net farm income in 2023 remains at a relatively high level historically.

•Weather conditions – Demand for irrigation equipment is often positively affected by storm damage and prolonged periods of drought conditions as producers look for ways to reduce the risk of low crop production and crop failures. Conversely, demand for irrigation equipment can be negatively affected during periods of more predictable or excessive natural precipitation.

•Governmental policies – A number of governmental laws and regulations can affect the Company’s business, including:

•The Agriculture Improvement Act of 2018 (the “Farm Bill”) was signed into law in December 2018. The Farm Bill provides a degree of certainty to growers, including funding for the Environmental Quality Incentives Program, which provides financial assistance to farmers to implement conservation practices, and is frequently used to assist in the purchase of center pivot irrigation systems. The current Farm Bill will expire at the end of September 2023.

•Changes to U.S. income tax laws enacted in December 2017 increased the benefit of certain tax incentives, such as the Section 179 income tax deduction and Section 168 bonus depreciation, which are intended to encourage equipment purchases by allowing 100 percent of the cost of equipment to be treated as an expense in the year of purchase rather than amortized over its useful life. This benefit is scheduled to be phased out over a five-year period, beginning in 2023 when the allowable deduction drops to 80 percent of the cost of equipment.

•Biofuel production continues to be a major demand driver for irrigated corn, sugar cane and soybeans as these crops are used in high volumes to produce ethanol and biodiesel. In December 2022, the U.S. Environmental Protection Agency (“EPA”) proposed the Renewable Fuels Standard (RFS) volume requirements for 2023, 2024, and 2025. The proposed volumes for 2023 are comparable to the volume of renewable fuel estimated to be used in 2022, with years 2024 and 2025 increasing 5 percent and 4 percent, respectively.

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•Many international markets are affected by government policies such as subsidies and other agriculturally related incentives. While these policies can have a significant effect on individual markets, they typically do not have a material effect on the consolidated results of the Company.

•Currency – The value of the U.S. dollar fluctuates in relation to the value of currencies in a number of countries to which the Company exports products and in which the Company maintains local operations. The strengthening of the dollar increases the cost in the local currency of the products exported from the U.S. into these countries and, therefore, could negatively affect the Company’s international sales and margins. In addition, the U.S. dollar value of sales made in any affected foreign currencies will decline as the value of the dollar rises in relation to these other currencies.

Demand for irrigation equipment in the U.S. has remained steady over the same prior year period, although farmer sentiment has been tempered somewhat by the projected decrease in net farm income, higher interest rates and concerns regarding inflation and general economic conditions. During this period the Company has been able to maintain its pricing while inflationary pressure on raw material and logistics costs have moderated. The Company expects to continue to actively track these circumstances and will monitor its prices in connection with changes in raw material and other costs.

The most significant opportunities for growth in irrigation sales over the next several years continue to be in international markets where irrigation use is less developed and demand is driven primarily by food security, water scarcity and population growth. While international irrigation markets remain active with opportunities for further development and expansion, regional political and economic factors, including armed conflict, currency conditions and other factors can create a challenging environment. The Company continues to monitor the Ukraine and Russia conflict for both short and long-term implications and has suspended new business activity in Russia and Belarus since February 2022. Sales with Russian and Ukrainian customers historically have represented less than 5% of consolidated revenues. Additionally, international results are heavily dependent upon project sales which tend to fluctuate and can be difficult to forecast accurately.

The infrastructure business continues to be driven by the Company's transportation safety products, the demand for which largely depends on government spending for road construction and improvements. The enactment of the Infrastructure Investment and Jobs Act in November 2021 marked the largest infusion of federal investment into infrastructure projects in more than a decade. This legislation introduced $110 billion in incremental federal funding, planned for roads, bridges, and other transportation projects, which the Company anticipates will translate into higher demand for its transportation safety products as the funds are appropriated and states begin to implement projects beginning in the second half of fiscal 2023.

The backlog of unshipped orders at February 28, 2023 was $95.2 million compared with $111.0 million at February 28, 2022. The irrigation backlog is lower and the infrastructure backlog is higher compared to the prior year. The Company’s backlog can fluctuate from period to period due to the seasonality, cyclicality, timing and execution of contracts. Backlog typically represents long-term projects as well as short lead-time orders, and therefore is generally not a good indication of the next fiscal quarter’s revenues.

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Results of Operations

For the Three Months ended February 28, 2023 compared to the Three Months ended February 28, 2022

The following section presents an analysis of the Company’s operating results displayed in the condensed consolidated statements of earnings for the three months ended February 28, 2023 and 2022. It should be read together with the industry segment information in Note 13 to the condensed consolidated financial statements:

	Three months ended
($ in thousands)	February 28, 2023			February 28, 2022			Percent Change
Consolidated
Operating revenues	$	166,241		$	200,137		-17%
Gross profit	$	54,258		$	42,944		26%
Gross margin		32.6	%		21.5	%
Operating expenses (1)	$	26,993		$	24,606		10%
Operating income	$	27,265		$	18,338		49%
Operating margin		16.4	%		9.2	%
Other income (expense), net	$	(1,532	)	$	866		-277%
Income tax expense	$	7,681		$	4,638		66%
Overall income tax rate		29.8	%		24.2	%
Net earnings	$	18,052		$	14,566		24%
Irrigation Segment
Segment operating revenues	$	147,776		$	180,759		-18%
Segment operating income	$	32,820		$	24,734		33%
Segment operating margin		22.2	%		13.7	%
Infrastructure Segment
Segment operating revenues	$	18,465		$	19,378		-5%
Segment operating income	$	2,019		$	324		523%
Segment operating margin		10.9	%		1.7	%

(1)Includes $7.6 million and $6.7 million of corporate operating expenses for the three months ended February 28, 2023 and 2022, respectively.

Revenues

Operating revenues for the three months ended February 28, 2023 decreased 17 percent to $166.2 million from $200.1 million for the three months ended February 28, 2022, as irrigation revenues decreased $32.9 million and infrastructure revenues decreased $0.9 million. The irrigation segment provided 89 percent of the Company’s revenue during the three months ended February 28, 2023 as compared to 90 percent for the three months ended February 28, 2022.

North America irrigation revenues for the three months ended February 28, 2023 of $90.4 million decreased $10.3 million, or 10 percent, from $100.7 million for the three months ended February 28, 2022. The decrease resulted from lower unit sales volume which was partially offset by the impact of higher average selling prices compared to the same prior year period. Higher unit volume in the prior year period was primarily due to a pull forward of orders in advance of announced selling price increases while current year unit volume reflected a more traditional seasonal demand as selling prices had stabilized. Higher average selling prices compared to the same prior year period resulted from the pass through of higher raw material costs to customers.

International irrigation revenues for the three months ended February 28, 2023 of $57.4 million decreased $22.6 million, or 28 percent, from $80.0 million for the three months ended February 28, 2022. The decrease resulted primarily from the completion of a large Egypt project in the prior year that did not repeat and lower sales volumes in Brazil, Ukraine and Russia. Sales and order activity in Brazil was temporarily reduced as a result of the federal government transition following the October 2022 presidential election. The current year was also impacted by the unfavorable effects of foreign currency translation of approximately $0.3 million compared to the same prior year period.

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Infrastructure segment revenues for the three months ended February 28, 2023 of $18.5 million decreased $0.9 million, or 5 percent, from $19.4 million for the three months ended February 28, 2022. An increase in Road Zipper System lease revenue during the current year was more than offset by lower sales of road safety products compared to the same prior year period. Road Zipper project sales were similar to the prior year second quarter.

Gross Profit

Gross profit for the three months ended February 28, 2023 of $54.3 million increased 26 percent from $42.9 million for the three months ended February 28, 2022. Gross margin was 32.6 percent of sales for the three months ended February 28, 2023 compared with 21.5 percent of sales for the three months ended February 28, 2022. Increased gross profit and gross margin in irrigation resulted primarily from improved price realization, lower inflationary impact on input costs and a more favorable margin mix of international revenues compared to the same prior year period. Prior year irrigation results were negatively impacted by the impact of higher raw material costs, including approximately $2.8 million in additional expense resulting from the impact of the LIFO method of accounting for inventory while the LIFO impact in the current year reduced expense by approximately $1.5 million. Additionally, the prior year included non-recurring costs of approximately $1.8 million related to factory maintenance and outside consulting services. Increased gross profit and gross margin in infrastructure resulted from a more favorable margin mix of revenue, improved price realization and lower inflationary impact on input costs compared to the same prior year period.

Operating Expenses

Operating expenses of $27.0 million for the three months ended February 28, 2023 increased $2.4 million, or 10 percent, compared with $24.6 million for the three months ended February 28, 2022. The increase resulted primarily from higher employee compensation costs and increased spending on new product development compared to the same prior year period.

Other Income (Expense), net

The Company recorded other expense of $1.5 million for the three months ended February 28, 2023 compared to other income of $0.9 million for the three months ended February 28, 2022. The change resulted primarily from foreign currency transaction losses in the current year compared to foreign currency transaction gains in the same prior year period.

Income Taxes

The Company recorded income tax expense of $7.7 million and $4.6 million for the three months ended February 28, 2023 and 2022, respectively. The effective income tax rate was 29.8 percent and 24.2 percent for the three months ended February 28, 2023 and 2022, respectively. The higher effective tax rate reflects an increased proportion of earnings in higher rate foreign jurisdictions, primarily Brazil, compared to the same prior year period. In addition, the same prior year period benefited from the impact of larger discrete items.

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For the Six Months ended February 28, 2023 compared to the Six Months ended February 28, 2022

The following section presents an analysis of the Company’s operating results displayed in the condensed consolidated statements of earnings for the six months ended February 28, 2023 and 2022. It should be read together with the industry segment information in Note 13 to the condensed consolidated financial statements:

	Six months ended
($ in thousands)	February 28, 2023			February 28, 2022			Percent Change
Consolidated
Operating revenues	$	342,400		$	366,288		-7%
Gross profit	$	107,278		$	80,381		33%
Gross margin		31.3	%		21.9	%
Operating expenses (1)	$	55,415		$	48,682		14%
Operating income	$	51,863		$	31,699		64%
Operating margin		15.1	%		8.7	%
Other expense, net	$	(2,125	)	$	(3,019	)	-30%
Income tax expense	$	13,469		$	6,213		117%
Overall income tax rate		27.1	%		21.7	%
Net earnings	$	36,269		$	22,467		61%
Irrigation Segment
Segment operating revenues	$	299,859		$	326,667		-8%
Segment operating income	$	61,461		$	41,946		47%
Segment operating margin		20.5	%		12.8	%
Infrastructure Segment
Segment operating revenues	$	42,541		$	39,621		7%
Segment operating income	$	5,391		$	3,090		74%
Segment operating margin		12.7	%		7.8	%

(1)Includes $15.0 million and $13.3 million of corporate operating expenses for the six months ended February 28, 2023 and 2022, respectively.

Revenues

Operating revenues for the six months ended February 28, 2023 decreased 7 percent to $342.4 million from $366.3 million for the six months ended February 28, 2022, as irrigation revenues decreased $26.8 million and infrastructure revenues increased $2.9 million. The irrigation segment provided 88 percent of the Company’s revenue during the six months ended February 28, 2023 as compared to 89 percent for the six months ended February 28, 2022.

North America irrigation revenues for the six months ended February 28, 2023 of $174.3 million decreased $5.4 million, or 3 percent, from $179.7 million for the six months ended February 28, 2022. The decrease resulted from lower unit sales volume which was partially offset by higher average selling prices compared to the same prior year period. Higher unit volume in the prior year period was primarily due to a pull forward of orders in advance of announced selling price increases while current year unit volume reflected a more traditional seasonal demand as selling prices had stabilized. Higher average selling prices compared to the same prior year period resulted from the pass through of higher raw material costs to customers.

International irrigation revenues for the six months ended February 28, 2023 of $125.6 million decreased $21.4 million, or 15 percent, from $147.0 million for the six months ended February 28, 2022. The decrease resulted primarily from the completion of a large Egypt project in the prior year that did not repeat and lower sales volumes in Ukraine and Russia. This decrease was partially offset by higher sales in Brazil and other markets. The current year was also impacted by unfavorable effects of foreign currency translation of approximately $2.0 million compared to the same prior year period.

Infrastructure segment revenues for the six months ended February 28, 2023 of $42.5 million increased $2.9 million, or 7 percent, from $39.6 million for the six months ended February 28, 2022. The increase resulted from higher Road Zipper System sales, which were partially offset by lower Road Zipper System lease revenue and lower sales of road safety products.

- 22 -

Gross Profit

Gross profit for the six months ended February 28, 2023 of $107.3 million increased 33 percent from $80.4 million for the six months ended February 28, 2022. Gross margin was 31.3 percent of sales for the six months ended February 28, 2023 compared with 21.9 percent of sales for the six months ended February 28, 2022. Increased gross profit and gross margin in irrigation resulted primarily from improved price realization, lower inflationary impact on input costs and a more favorable margin mix of international revenues compared to the same prior year period. Prior year irrigation results were negatively impacted by the impact of higher raw material costs, including approximately $7.8 million in additional expense resulting from the impact of the LIFO method of accounting for inventory while the LIFO impact in the current year reduced expense by approximately $1.5 million. In addition, costs of approximately $1.8 million were incurred in the prior year related to non-recurring factory maintenance and outside consulting services that did not repeat. Increased gross profit and gross margin in infrastructure resulted from a more favorable margin mix of revenue, improved price realization and lower inflationary impact on input costs compared to the same prior year period. Prior year infrastructure results were negatively impacted by approximately $1.0 million in additional expense resulting from the impact of LIFO while the current year impact was minimal.

Operating Expenses

Operating expenses of $55.4 million for the six months ended February 28, 2023 increased $6.7 million, or 14 percent, compared with $48.7 million for the six months ended February 28, 2022. The increase resulted primarily from higher employee incentive expense attributable to improved business results, increased spending on new product development and increased personnel costs compared to the same prior year period.

Other Expense, net

Other expense for the six months ended February 28, 2023 decreased $0.9 million compared to the six months ended February 28, 2022. The change resulted primarily from lower interest expense and higher interest income compared to the same prior year period.

Income Taxes

The Company recorded income tax expense of $13.5 million and $6.2 million for the six months ended February 28, 2023 and 2022, respectively. The effective income tax rate was 27.1 percent and 21.7 percent for the six months ended February 28, 2023 and 2022, respectively. The higher effective tax rate reflects an increased proportion of earnings in higher rate foreign jurisdictions, primarily Brazil, compared to the same prior year period. In addition, the same prior year period benefited from the impact of larger discrete items.

- 23 -

Liquidity and Capital Resources

The Company's cash, cash equivalents, and marketable securities totaled $106.4 million at February 28, 2023 compared with $93.9 million at February 28, 2022 and $116.5 million at August 31, 2022. The Company requires cash for financing its receivables and inventories, paying operating expenses and capital expenditures, and for dividends and share repurchases. The Company meets its liquidity needs and finances its capital expenditures from its available cash and funds provided by operations along with borrowings under its credit arrangements described below. The Company’s investments in marketable securities are primarily comprised of United States government securities and investment grade corporate securities. The Company believes its current cash resources, investments in marketable securities, projected operating cash flow, and remaining capacity under its continuing bank lines of credit are sufficient to cover all its expected working capital needs, planned capital expenditures and dividends. The Company may require additional borrowings to fund potential acquisitions in the future.

The Company’s total cash and cash equivalents held by foreign subsidiaries were approximately $51.2 million, $37.3 million, and $49.0 million as of February 28, 2023, February 28, 2022, and August 31, 2022, respectively. The Company considers earnings in foreign subsidiaries to be indefinitely reinvested and would need to accrue and pay incremental state, local, and foreign taxes if such earnings were repatriated to the United States. The Company does not intend to repatriate the funds and does not expect these funds to have a significant impact on the Company’s overall liquidity.

Net working capital was $347.3 million at February 28, 2023, as compared with $288.9 million at February 28, 2022 and $316.2 million at August 31, 2022. Cash provided by operating activities totaled $7.9 million during the six months ended February 28, 2023, compared to cash used in operating activities of $35.9 million during the six months ended February 28, 2022. The increase was primarily driven by higher net earnings, a reduction in inventory and a lower increase in accounts receivable, partially offset by a reduction in current liabilities, compared to the same prior year period.

Cash flows used in investing activities totaled $5.7 million during the six months ended February 28, 2023 compared to $15.6 million during the six months ended February 28, 2022. Cash proceeds from the maturities of marketable securities decreased $10.0 million compared to the same prior year period. Purchases of property, plant, and equipment were $7.2 million, compared to $6.9 million in the same prior year period.

Cash flows used in financing activities totaled $9.8 million during the six months ended February 28, 2023 compared to cash flows used in financing activities of $5.5 million during the six months ended February 28, 2022. The change was primarily the result of lower proceeds from the exercise of stock options compared to the same prior year period.

Capital Allocation Plan

The Company’s capital allocation plan is to continue investing in revenue and earnings growth, combined with a defined process for enhancing returns to stockholders. Under the Company’s capital allocation plan, the priorities for uses of cash include:

•Investment in organic growth including capital expenditures and expansion of international markets,

•Dividends to stockholders, along with expectations to increase dividends over time,

•Synergistic acquisitions that provide attractive returns to stockholders, and

•Opportunistic share repurchases taking into account cyclical and seasonal fluctuations.

Capital Expenditures

Capital expenditures for fiscal 2023 are expected to be between $15.0 million and $20.0 million, including equipment replacement, productivity improvements and new product development. The Company’s management does maintain flexibility to modify the amount and timing of some of the planned expenditures in response to economic conditions.

Dividends

In the second quarter of fiscal 2023, the Company paid a quarterly cash dividend to stockholders of $0.34 per common share, or $3.7 million, compared to a quarterly cash dividend of $0.33 per common share, or $3.6 million, in the second quarter of fiscal 2022.

- 24 -

Share Repurchases

The Company’s Board of Directors authorized a share repurchase program of up to $250.0 million of common stock with no expiration date. Under the program, shares may be repurchased in privately negotiated and/or open market transactions as well as under formalized trading plans in accordance with the guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. There were no shares repurchased during the six months ended February 28, 2023 or 2022. The remaining amount available under the repurchase program was $63.7 million as of February 28, 2023.

Long-Term Borrowing Facilities

Senior Notes. The Company has outstanding $115.0 million in aggregate principal amount of Senior Notes, Series A (the “Senior Notes”). The entire principal of the Senior Notes is due and payable on February 19, 2030. Interest on the Senior Notes is payable semi-annually at a fixed annual rate of 3.82 percent. Borrowings under the Senior Notes are unsecured. The Company used the proceeds of the sale of the Senior Notes for general corporate purposes, including acquisitions and dividends.

Revolving Credit Facility. The Company has outstanding a $50.0 million unsecured Amended and Restated Revolving Credit Facility (the “Revolving Credit Facility”) with Wells Fargo Bank, National Association (“Wells Fargo”) expiring August 26, 2026. The Company intends to use borrowings under the Revolving Credit Facility for working capital purposes and to fund acquisitions. At February 28, 2023 and 2022, the Company had no outstanding borrowings under the Revolving Credit Facility. The amount of borrowings available at any time under the Revolving Credit Facility is reduced by the amount of standby letters of credit issued by Wells Fargo then outstanding. At February 28, 2023, the Company had the ability to borrow up to $50.0 million under the Revolving Credit Facility. The Revolving Credit Facility may be increased by up to an additional $50.0 million at any time, subject to additional commitment approval. Borrowings under the Revolving Credit Facility bear interest at a variable rate equal to the Secured Overnight Financing Rate ("SOFR") plus a margin of between 100 and 210 basis points depending on the Company’s leverage ratio then in effect (which resulted in a variable rate of 5.90 percent at February 28, 2023), subject to adjustment as set forth in the loan documents for the Revolving Credit Facility. Interest is paid on a monthly to quarterly basis depending on loan type. The Company currently pays an annual commitment fee on the unused portion of the Revolving Credit Facility. The fee is between 0.125 percent and 0.2 percent on the unused balance depending on the Company’s leverage ratio then in effect (which resulted in a fee of 0.125 percent at February 28, 2023).

Borrowings under the Revolving Credit Facility have equal priority with borrowings under the Company’s Senior Notes. Each of the credit arrangements described above include certain covenants relating primarily to the Company’s financial condition. These financial covenants include a funded debt to EBITDA leverage ratio and an interest coverage ratio. In the event that the loan documents for the Revolving Credit Facility were to require the Company to comply with any financial covenant that is not already included or is more restrictive than what is already included in the arrangement governing the Senior Notes, then such covenant shall be deemed incorporated by reference for the benefit of holders of the Senior Notes. Upon the occurrence of any event of default of these covenants, including a change in control of the Company, all amounts outstanding thereunder may be declared to be immediately due and payable. At February 28, 2023 and 2022, the Company was in compliance with all financial loan covenants contained in its credit arrangements in place as of each of those dates.

Series 2006A Bonds. Elecsys International LLC, a wholly owned subsidiary of the Company, has outstanding $0.8 million in principal amount of industrial revenue bonds that were issued in 2006 (the “Series 2006A Bonds”). Principal and interest on the Series 2006A Bonds are payable monthly through maturity on September 1, 2026. The interest rate is adjustable every five years based on the yield of the 5-year United States Treasury Notes, plus 0.45 percent (1.72 percent as of February 28, 2023). This rate was adjusted on September 1, 2021 in accordance with the terms of the bonds, and the adjusted rate will be in force through maturity. The obligations under the Series 2006A Bonds are secured by a first priority security interest in certain real estate.

Contractual Obligations and Commercial Commitments

There have been no material changes in the Company’s contractual obligations and commercial commitments as described in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2022.

ITEM 3 – Quantitative and Qualitative Disclosures About Market Risk

There have been no material changes from the Company’s quantitative and qualitative disclosures about market risk previously disclosed in the Company’s most recent Annual Report on Form 10-K. See discussion of the Company’s quantitative and qualitative disclosures about market risk under Part II, Item 7A in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2022.

- 25 -

ITEM 4 – Controls and Procedures

Disclosure Controls and Procedures

The Company carried out an evaluation under the supervision and the participation of the Company’s management, including the Company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of February 28, 2023.

Changes in Internal Control over Financial Reporting

The CEO and CFO determined that there has not been any significant change to the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

- 26 -

Part II – OTHER INFORMATION

ITEM 1 – Legal Proceedings

See the disclosure in Note 8 – Commitments and Contingencies to the condensed consolidated financial statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q, which disclosure is hereby incorporated herein by reference.

ITEM 1A – Risk Factors

There have been no material changes from risk factors previously disclosed in the Company’s most recent Annual Report on Form 10-K. See the discussions of the Company’s risk factors under Part I, Item 1A in the Company’s Annual Report on Form 10-K for the fiscal year ended August 31, 2022.

ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds

None.

ITEM 3 – Defaults Upon Senior Securities

None.

ITEM 4 – Mine Safety Disclosures

Not applicable.

ITEM 5 – Other Information

None.

- 27 -

ITEM 6 – Exhibits

Exhibit
No.	Description
3.1	Restated Certificate of Incorporation of the Company, incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on December 14, 2006.
3.2	Amended and Restated By‑Laws of the Company, effective October 17, 2018, incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on October 19, 2018.
4.1	Specimen Form of Common Stock Certificate, incorporated by reference to Exhibit 4(a) of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2006.
10.1	Lindsay Corporation Nonqualified Deferred Compensation Plan, incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed on May 3, 2022. †
10.2	Lindsay Corporation Nonqualified Deferred Compensation Plan Adoption Agreement, incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K filed on May 3, 2022. †
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
32.1*	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
101*	Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language ("Inline XBRL").
104*	Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

† Management contract or compensatory plan or arrangement required to be filed as an exhibit hereto pursuant to Item 6 of Part II of Form 10-Q.

* Filed herein.

- 28 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 4th day of April 2023.

	LINDSAY CORPORATION
By:	/s/ BRIAN L. KETCHAM
Name:	Brian L. Ketcham
Title:	Senior Vice President and Chief Financial Officer
	(on behalf of the registrant and as principal financial officer)

- 29 -

EX-31

EXHIBIT 31.1

CERTIFICATION

I, Randy A. Wood, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Lindsay Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ RANDY A. WOOD	President and Chief Executive Officer
Randy A. Wood	April 4, 2023

EX-31

EXHIBIT 31.2

CERTIFICATION

I, Brian L. Ketcham, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Lindsay Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ BRIAN L. KETCHAM	Senior Vice President and Chief Financial Officer
Brian L. Ketcham	April 4, 2023

EX-32

EXHIBIT 32.1

CERTIFICATION

In connection with the accompanying Quarterly Report on Form 10-Q (the “Report”) of Lindsay Corporation (the “Company”) for the quarter ended February 28, 2023, I, Randy A. Wood, Chief Executive Officer of the Company and I, Brian L. Ketcham, Chief Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ RANDY A. WOOD

Randy A. Wood

President and Chief Executive Officer

/s/ BRIAN L. KETCHAM

Brian L. Ketcham

Senior Vice President and Chief Financial Officer

April 4, 2023

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	6 Months Ended
	Feb. 28, 2023	Mar. 28, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Feb. 28, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Trading Symbol	LNN
Entity Registrant Name	Lindsay Corporation
Entity Central Index Key	0000836157
Entity Current Reporting Status	Yes
Current Fiscal Year End Date	--08-31
Entity Filer Category	Large Accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity File Number	1-13419
Entity Tax Identification Number	47-0554096
Entity Address, Address Line One	18135 Burke Street
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Omaha
Entity Address, State or Province	NE
Entity Address, Country	US
Entity Address, Postal Zip Code	68022
City Area Code	402
Local Phone Number	829-6800
Entity Common Stock, Shares Outstanding		11,007,905
Entity Interactive Data Current	Yes
Entity Ex Transition Period	Common Stock, $1.00 par value
Security Exchange Name	NYSE
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE

XML

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Income Statement [Abstract]
Operating revenues	$ 166,241	$ 200,137	$ 342,400	$ 366,288
Cost of operating revenues	111,983	157,193	235,122	285,907
Gross profit	54,258	42,944	107,278	80,381
Operating expenses:
Selling expense	8,733	7,932	18,410	15,922
General and administrative expense	13,739	13,022	28,176	25,901
Engineering and research expense	4,521	3,652	8,829	6,859
Total operating expenses	26,993	24,606	55,415	48,682
Operating income	27,265	18,338	51,863	31,699
Other income (expense):
Interest expense	(1,038)	(1,176)	(1,947)	(2,339)
Interest income	490	160	865	338
Other income (expense), net	(984)	1,882	(1,043)	(1,018)
Total other income (expense)	(1,532)	866	(2,125)	(3,019)
Earnings before income taxes	25,733	19,204	49,738	28,680
Income tax expense	7,681	4,638	13,469	6,213
Net earnings	$ 18,052	$ 14,566	$ 36,269	$ 22,467
Earnings per share:
Basic	$ 1.64	$ 1.33	$ 3.30	$ 2.05
Diluted	$ 1.63	$ 1.32	$ 3.28	$ 2.04
Shares used in computing earnings per share:
Basic	11,007	10,974	10,998	10,950
Diluted	11,063	11,014	11,068	11,020
Cash dividends declared per share	$ 0.34	$ 0.33	$ 0.68	$ 0.66

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Statement of Comprehensive Income [Abstract]
Net earnings	$ 18,052	$ 14,566	$ 36,269	$ 22,467
Other comprehensive income (loss):
Defined benefit pension plan adjustment, net of tax	40	48	80	97
Foreign currency translation adjustment, net of hedging activities and tax	1,308	1,997	(878)	(1,353)
Unrealized gain (loss) on marketable securities, net of tax	71	(105)	72	(162)
Total other comprehensive income (loss), net of tax expense (benefit) of $52, ($21), ($417), and ($19) respectively	1,419	1,940	(726)	(1,418)
Total comprehensive income	$ 19,471	$ 16,506	$ 35,543	$ 21,049

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Statement of Comprehensive Income [Abstract]
Other comprehensive income (loss), tax expense (benefit)	$ 52	$ (21)	$ (417)	$ (19)

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022	Feb. 28, 2022
Current assets:
Cash and cash equivalents	$ 97,675	$ 105,048	$ 68,951
Marketable securities	8,763	11,460	24,934
Receivables, net of allowance of $4,959, $3,726, and $4,118, respectively	167,007	138,200	134,694
Inventories, net	178,703	193,776	187,328
Other current assets, net	27,973	28,617	34,350
Total current assets	480,121	477,101	450,257
Property, plant, and equipment:
Cost	246,396	240,981	234,183
Less accumulated depreciation	(152,558)	(146,509)	(141,892)
Property, plant, and equipment, net	93,838	94,472	92,291
Intangibles, net	17,329	18,208	19,311
Goodwill	67,409	67,130	67,679
Operating lease right-of-use assets	17,984	19,181	16,724
Deferred income tax assets	9,518	9,313	5,352
Other noncurrent assets	22,881	25,248	24,970
Total assets	709,080	710,653	676,584
Current liabilities:
Accounts payable	52,998	60,036	74,345
Current portion of long-term debt	224	222	220
Other current liabilities	79,566	100,684	86,837
Total current liabilities	132,788	160,942	161,402
Pension benefits liabilities	4,733	4,892	5,567
Long-term debt	115,253	115,341	115,428
Operating lease liabilities	18,659	19,810	17,170
Deferred income tax liabilities	702	1,054	783
Other noncurrent liabilities	14,673	15,256	19,696
Total liabilities	286,808	317,295	320,046
Shareholders' equity:
Preferred stock of $1 par value - authorized 2,000 shares; no shares issued and outstanding	0	0	0
Common stock of $1 par value - authorized 25,000 shares; 19,091, 19,061, and 19,063 shares issued, respectively	19,091	19,063	19,061
Capital in excess of stated value	94,834	94,006	90,711
Retained earnings	607,784	579,000	543,355
Less treasury stock - at cost, 8,083 shares	(277,238)	(277,238)	(277,238)
Accumulated other comprehensive loss, net	(22,199)	(21,473)	(19,351)
Total shareholders' equity	422,272	393,358	356,538
Total liabilities and shareholders' equity	$ 709,080	$ 710,653	$ 676,584

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022	Feb. 28, 2022
Statement of Financial Position [Abstract]
Receivables, allowance	$ 4,959	$ 4,118	$ 3,726
Preferred stock, par value	$ 1	$ 1	$ 1
Preferred stock, authorized	2,000,000	2,000,000	2,000,000
Preferred stock, issued	0	0	0
Preferred stock, outstanding	0	0	0
Common stock, par value	$ 1	$ 1	$ 1
Common stock, authorized	25,000,000	25,000,000	25,000,000
Common stock, issued	19,091,000	19,063,000	19,061,000
Treasury stock, shares	8,083,000	8,083,000	8,083,000

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Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Treasury Stock [Member]	Capital In Excess Of Stated Value [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss, Net [Member]
Beginning balance, value at Aug. 31, 2021	$ 338,445	$ 18,991	$ (277,238)	$ 86,495	$ 528,130	$ (17,933)
Beginning balance, shares at Aug. 31, 2021		18,991	8,083
Net earnings	22,467	$ 0	$ 0	0	22,467	0
Other comprehensive income (loss)	(1,418)	0	0	0	0	(1,418)
Total comprehensive income	21,049	0	0	0	0	0
Cash dividends per share	(7,242)	0	0	0	(7,242)	0
Issuance of common shares under share compensation plans, net	1,875	$ 70	$ 0	1,805	0	0
Issuance of common shares under share compensation plans, net, shares		70	0
Share-based compensation expense	2,411	$ 0	$ 0	2,411	0	0
Ending balance, value at Feb. 28, 2022	356,538	$ 19,061	$ (277,238)	90,711	543,355	(19,351)
Ending Balance, shares at Feb. 28, 2022		19,061	8,083
Beginning balance, value at Nov. 30, 2021	341,943	$ 19,056	$ (277,238)	89,006	532,410	(21,291)
Beginning balance, shares at Nov. 30, 2021		19,056	8,083
Net earnings	14,566	$ 0	$ 0	0	14,566	0
Other comprehensive income (loss)	1,940	0	0	0	0	1,940
Total comprehensive income	16,506	0	0	0	0	0
Cash dividends per share	(3,621)	0	0	0	(3,621)	0
Issuance of common shares under share compensation plans, net	521	$ 5	$ 0	516	0	0
Issuance of common shares under share compensation plans, net, shares		5	0
Share-based compensation expense	1,189	$ 0	$ 0	1,189	0	0
Ending balance, value at Feb. 28, 2022	356,538	$ 19,061	$ (277,238)	90,711	543,355	(19,351)
Ending Balance, shares at Feb. 28, 2022		19,061	8,083
Beginning balance, value at Aug. 31, 2022	393,358	$ 19,063	$ (277,238)	94,006	579,000	(21,473)
Beginning balance, shares at Aug. 31, 2022		19,063	8,083
Net earnings	36,269	$ 0	$ 0	0	36,269	0
Other comprehensive income (loss)	(726)	0	0	0	0	(726)
Total comprehensive income	35,543	0	0	0	0	0
Cash dividends per share	(7,485)	0	0	0	(7,485)	0
Issuance of common shares under share compensation plans, net	(2,233)	$ 28	$ 0	(2,261)	0	0
Issuance of common shares under share compensation plans, net, shares		28	0
Share-based compensation expense	3,089	$ 0	$ 0	3,089	0	0
Ending balance, value at Feb. 28, 2023	422,272	$ 19,091	$ (277,238)	94,834	607,784	(22,199)
Ending Balance, shares at Feb. 28, 2023		19,091	8,083
Beginning balance, value at Nov. 30, 2022	404,788	$ 19,090	$ (277,238)	93,079	593,475	(23,618)
Beginning balance, shares at Nov. 30, 2022		19,090	8,083
Net earnings	18,052	$ 0	$ 0	0	18,052	0
Other comprehensive income (loss)	1,419	0	0	0	0	1,419
Total comprehensive income	19,471	0	0	0	0	0
Cash dividends per share	(3,743)	0	0	0	(3,743)	0
Issuance of common shares under share compensation plans, net	140	$ 1	$ 0	139	0	0
Issuance of common shares under share compensation plans, net, shares		1	0
Share-based compensation expense	1,616	$ 0	$ 0	1,616	0	0
Ending balance, value at Feb. 28, 2023	$ 422,272	$ 19,091	$ (277,238)	$ 94,834	$ 607,784	$ (22,199)
Ending Balance, shares at Feb. 28, 2023		19,091	8,083

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Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Statement of Stockholders' Equity [Abstract]
Cash dividends per share	$ 0.34	$ 0.33	$ 0.68	$ 0.66

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 36,269	$ 22,467
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization	9,695	9,912
Provision for uncollectible accounts receivable	834	322
Deferred income taxes	(185)	3,052
Share-based compensation expense	3,089	2,411
Unrealized foreign currency transaction loss (gain)	878	(111)
Other, net	354	627
Changes in assets and liabilities:
Receivables	(28,707)	(41,286)
Inventories	14,014	(42,412)
Other current assets	1,635	(2,541)
Accounts payable	(6,178)	28,757
Other current liabilities	(25,553)	(8,317)
Other noncurrent assets and liabilities	1,742	(8,732)
Net cash provided by (used in) operating activities	7,887	(35,851)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment	(7,222)	(6,926)
Purchases of marketable securities	0	(18,468)
Proceeds from maturities of marketable securities	2,725	12,752
Other investing activities, net	(1,214)	(2,974)
Net cash used in investing activities	(5,711)	(15,616)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	0	2,821
Common stock withheld for payroll tax obligations	(2,471)	(1,181)
Proceeds from employee stock purchase plan	238	235
Principal payments on long-term debt	(110)	(108)
Dividends paid	(7,485)	(7,242)
Net cash used in financing activities	(9,828)	(5,475)
Effect of exchange rate changes on cash and cash equivalents	279	(1,214)
Net change in cash and cash equivalents	(7,373)	(58,156)
Cash and cash equivalents, beginning of period	105,048	127,107
Cash and cash equivalents, end of period	$ 97,675	$ 68,951

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Basis of Presentation

6 Months Ended

Feb. 28, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 1 – Basis of Presentation

The condensed consolidated financial statements are presented in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and do not include all of the disclosures normally required by U.S. generally accepted accounting principles (“U.S. GAAP”) as contained in Lindsay Corporation’s (the “Company”) Annual Report on Form 10-K. Accordingly, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended August 31, 2022.

In the opinion of management, the condensed consolidated financial statements of the Company reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position and the results of operations and cash flows for the periods presented. The results for interim periods are not necessarily indicative of trends or results expected by the Company for a full year. The condensed consolidated financial statements were prepared using U.S. GAAP. These principles require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses. Actual results could differ from these estimates.

Recent Accounting Guidance Adopted

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting and related disclosure requirements for income taxes. The Company adopted this standard in the first quarter of its fiscal 2022. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements.

Recent Accounting Guidance Not Yet Adopted

In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs, which requires annual and interim disclosures for entities that finance its purchases with supplier finance programs. These amendments are effective for the Company beginning in its fiscal 2024, except for the amendment on rollforward information, which is effective for the Company beginning in its fiscal 2025. The adoption of this ASU is not expected to have a material impact on its condensed consolidated financial statements.

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Revenue Recognition

6 Months Ended

Feb. 28, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Note 2 – Revenue Recognition

Disaggregation of Revenue

A breakout by segment of revenue recognized over time versus at a point in time for the three and six months ended February 28, 2023 and 2022 is as follows:

	Three months ended						Three months ended
	February 28, 2023						February 28, 2022
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	141,528	$	14,697	$	156,225	$	175,251	$	16,010	$	191,261
Over time		6,248		1,657		7,905		5,508		1,467		6,975
Revenue from the contracts with customers		147,776		16,354		164,130		180,759		17,477		198,236
Lease revenue		—		2,111		2,111		—		1,901		1,901
Total operating revenues	$	147,776	$	18,465	$	166,241	$	180,759	$	19,378	$	200,137
	Six months ended						Six months ended
	February 28, 2023						February 28, 2022
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	287,245	$	34,927	$	322,172	$	315,383	$	30,723	$	346,106
Over time		12,614		3,111		15,725		11,284		2,209		13,493
Revenue from the contracts with customers		299,859		38,038		337,897		326,667		32,932		359,599
Lease revenue		—		4,503		4,503		—		6,689		6,689
Total operating revenues	$	299,859	$	42,541	$	342,400	$	326,667	$	39,621	$	366,288

Further disaggregation of revenue is disclosed in the Note 13 – Industry Segment Information.

For contracts with an initial length longer than twelve months, the unsatisfied performance obligations were $1.8 million at February 28, 2023.

Contract Balances

Contract assets arise when recorded revenue for a contract exceeds the amounts billed under the terms of such contract. Contract liabilities arise when billed amounts exceed revenue recorded. Amounts are billable to customers upon various measures of performance, including achievement of certain milestones and completion of specified units of completion of the contract. At February 28, 2023, February 28, 2022, and August 31, 2022, contract assets amounted to $1.1 million, $1.1 million, and $0.9 million, respectively. These amounts are included within other current assets on the condensed consolidated balance sheets.

Contract liabilities include advance payments from customers and billings in excess of delivery of performance obligations. At February 28, 2023, February 28, 2022, and August 31, 2022, contract liabilities amounted to $17.9 million, $39.7 million, and $30.6 million, respectively. Contract liabilities are included within other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets. During the Company’s six months ended February 28, 2023 and 2022, the Company recognized $25.0 million and $25.6 million of revenue that were included in the liabilities as of August 31, 2022 and 2021 respectively. The revenue recognized was due to applying advance payments received for the performance obligations completed during the quarter.

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Net Earnings Per Share

6 Months Ended

Feb. 28, 2023

Earnings Per Share [Abstract]

Net Earnings Per Share

Note 3 – Net Earnings per Share

Basic earnings per share is calculated on the basis of weighted average outstanding common shares. Diluted earnings per share is calculated on the basis of basic weighted average outstanding common shares adjusted for the dilutive effect of stock options, restricted stock unit awards and other dilutive securities.

The following table shows the computation of basic and diluted net earnings per share for the three and six months ended February 28, 2023 and 2022:

	Three months ended				Six months ended
($ and shares in thousands, except per share amounts)	February 28, 2023		February 28, 2022		February 28, 2023		February 28, 2022
Numerator:
Net earnings	$	18,052	$	14,566	$	36,269	$	22,467
Denominator:
Weighted average shares outstanding		11,007		10,974		10,998		10,950
Diluted effect of stock awards		56		40		70		70
Weighted average shares outstanding assuming    dilution		11,063		11,014		11,068		11,020
Basic net earnings per share	$	1.64	$	1.33	$	3.30	$	2.05
Diluted net earnings per share	$	1.63	$	1.32	$	3.28	$	2.04

Certain stock options and restricted stock units were excluded from the computation of diluted net earnings per share because their effect would have been anti-dilutive. Performance stock units are excluded from the calculation of dilutive potential common shares until the threshold performance conditions have been satisfied. The number of securities excluded from the computation of earnings per share because their effect would have been anti-dilutive was not significant for the three and six months ended February 28, 2023 and 2022.

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Income Taxes

6 Months Ended

Feb. 28, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 4 – Income Taxes

The Company recorded income tax expense of $7.7 million and $4.6 million for the three months ended February 28, 2023 and 2022, respectively, and recorded income tax expense of $13.5 million and $6.2 million for the six months ended February 28, 2023 and 2022, respectively.

It is the Company’s policy to report income tax expense for interim periods using an estimated annual effective income tax rate. The estimated annual effective income tax rate was 28.2 percent and 25.5 percent for the six months ended February 28, 2023 and 2022, respectively. The increase in the estimated annual effective income tax rate relates primarily to the change in earnings mix among foreign operations and the finalization of U.S. tax regulations related to foreign tax credits in calendar 2022.

The tax effects of significant or unusual items are not considered in the estimated annual effective income tax rate. The tax effects of such discrete events are recognized in the interim period in which the events occur. The Company recorded discrete items resulting in an income tax benefit of $0.6 million and $1.1 million for the six months ended February 28, 2023 and 2022, respectively. The discrete items recorded primarily relate to the vesting of share-based compensation awards.

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Inventories

6 Months Ended

Feb. 28, 2023

Inventory Disclosure [Abstract]

Inventories

Note 5 – Inventories

Inventories consisted of the following as of February 28, 2023, February 28, 2022, and August 31, 2022:

($ in thousands)	February 28, 2023			February 28, 2022			August 31, 2022
Raw materials and supplies	$	89,968		$	86,010		$	93,469
Work in process		9,837			11,620			12,603
Finished goods and purchased parts, net		103,067			96,724			110,022
Total inventory value before LIFO adjustment		202,872			194,354			216,094
Less adjustment to LIFO value		(24,169	)		(7,026	)		(22,318	)
Inventories, net	$	178,703		$	187,328		$	193,776

Of the $178.7 million, $187.3 million, and $193.8 million of net inventories at February 28, 2023, February 28, 2022, and August 31, 2022, respectively, $47.2 million, $53.5 million, and $55.5 million, respectively, was valued on the last-in, first-out ("LIFO") basis, and $131.5 million, $133.9 million, and $138.3 million, respectively, was valued on the first-in, first-out ("FIFO") or average cost methods.

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Long-Term Debt

6 Months Ended

Feb. 28, 2023

Debt Disclosure [Abstract]

Long-Term Debt

Note 6 – Long-Term Debt

The following table sets forth the outstanding principal balances of the Company’s long-term debt as of the dates shown:

($ in thousands)	February 28, 2023			February 28, 2022			August 31, 2022
Series A Senior Notes	$	115,000		$	115,000		$	115,000
Elecsys Series 2006A Bonds		822			1,042			931
Total debt		115,822			116,042			115,931
Less current portion		(224	)		(220	)		(222	)
Less unamortized debt issuance costs		(345	)		(394	)		(368	)
Total long-term debt	$	115,253		$	115,428		$	115,341

Principal payments on the debt are due as follows:

Due within	$ in thousands
1 year	$	224
2 years		228
3 years		232
4 years		138
Thereafter		115,000
	$	115,822

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Fair Value Measurements

6 Months Ended

Feb. 28, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 7 – Fair Value Measurements

The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of February 28, 2023, February 28, 2022, and August 31, 2022. There were no transfers between any levels for the periods presented.

	February 28, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	97,675	$	—	$	—	$	97,675
Marketable securities:
Corporate bonds		—		6,976		—		6,976
U.S. treasury securities		—		1,787		—		1,787
Derivative asset		—		3,520		—		3,520
	February 28, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	68,951	$	—	$	—	$	68,951
Marketable securities:
Corporate bonds		—		20,322		—		20,322
U.S. treasury securities		—		4,612		—		4,612
	August 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	105,048	$	—	$	—	$	105,048
Marketable securities:
Corporate bonds		—		9,668		—		9,668
U.S. treasury securities		—		1,792		—		1,792
Derivative asset		—		5,505		—		5,505

The Company’s investment in marketable securities consists of United States treasury bonds and investment grade corporate bonds. The marketable securities are classified as available-for-sale and are carried at fair value with the change in unrealized gains and losses reported as a separate component on the condensed consolidated statements of comprehensive income until realized. The Company determines fair value using data points that are observable, such as quoted prices and interest rates. The amortized cost of the investments approximates fair value. Investment income is recorded within other income (expense) on the condensed consolidated statements of earnings. As of February 28, 2023, approximately 64% of the Company’s marketable securities investments mature within one year and 36% mature within one to two years.

The Company enters into derivative instrument agreements to manage risk in connection with changes in foreign currency. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit and does not enter into derivative instrument agreements for trading or speculative purposes. The fair values are based on inputs other than quoted prices that are observable for the asset or liability and are determined by standard calculations and models that use readily observable market parameters. These inputs include foreign currency exchange rates and interest rates. Industry standard data providers are the primary source for forward and spot rate information for both interest rates and foreign currency exchange rates.

On March 28, 2022, the Company entered into a fixed-to-fixed cross currency swap with a notional amount of $50.0 million, or €45.6 million, that is set to mature on March 30, 2027. The Company elected the spot method for designating this contract as a net investment hedge. Changes in the fair value of this contract are reported in accumulated other comprehensive loss on the condensed consolidated balance sheets. The fair value of this contract as of February 28, 2023, is disclosed in the table above, and is recorded within other noncurrent assets on the condensed consolidated balance sheets.

There were no required fair value adjustments for assets and liabilities measured at fair value on a non-recurring basis for the six months ended February 28, 2023 or 2022.

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Commitments and Contingencies

6 Months Ended

Feb. 28, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 8 – Commitments and Contingencies

In the ordinary course of its business operations, the Company enters into arrangements that obligate it to make future payments under contracts such as lease agreements. Additionally, the Company is involved, from time to time, in commercial litigation, employment disputes, administrative proceedings, business disputes and other legal proceedings. The Company has established accruals for certain proceedings based on an assessment of probability of loss. The Company believes that any such currently-pending proceedings are either covered by insurance or would not have a material effect on the business or its consolidated financial statements if decided in a manner that is unfavorable to the Company. Such proceedings are exclusive of environmental remediation matters which are discussed separately below.

Infrastructure Products

The Company is currently defending a number of product liability lawsuits arising out of vehicle collisions with highway barriers incorporating the Company’s X-Lite® end terminal. Despite the September 2018 reversal of a sizable judgment against a competitor, the Company expects that the significant attention brought to the infrastructure products industry by the original judgment may lead to additional lawsuits being filed against the Company and others in the industry.

The Company, certain of its subsidiaries, and certain third parties which originally designed the X-Lite end terminal have also been named in a lawsuit filed on June 9, 2020 in the Circuit Court of Cole County, Missouri by Missouri Highways and Transportation Commission (“MHTC”). MHTC alleges, among other things, that the X-Lite end terminal was defectively designed and failed to perform as designed, intended, and advertised, leading to MHTC’s removal and replacement of X-Lite end terminals from Missouri’s roadways. MHTC alleges strict liability (defective design and failure to warn), negligence, breach of express warranties, breach of implied warranties (merchantability and fitness for a particular purpose), fraud, and public nuisance. MHTC seeks compensatory damages, interest, attorneys’ fees, and punitive damages.

The Company believes it has meritorious factual and legal defenses to each of the lawsuits discussed above and is prepared to vigorously defend its interests. Based on the information currently available to the Company, the Company does not believe that a loss is probable in any of these lawsuits; therefore, no accrual has been included in the Company’s consolidated financial statements. While it is possible that a loss may be incurred, the Company is unable to estimate a range of potential loss due to the complexity and current status of these lawsuits. However, the Company maintains insurance coverage to mitigate the impact of adverse exposures in these lawsuits and does not expect that these lawsuits will have a material adverse effect on its business or its consolidated financial statements.

In June 2019, the Company was informed by letter that the Department of Justice, Civil Division and U.S. Attorney’s Office for the Northern District of New York, with the assistance of the Department of Transportation, Office of Inspector General, are conducting an investigation of the Company relating to the Company’s X-Lite end terminal and potential violations of the federal civil False Claims Act. Depending on the outcome of this matter, there could be a material adverse effect on the Company’s business or its consolidated financial statements. Given the current posture of the matter, the Company is unable to estimate a range of potential loss, if any, or to express an opinion regarding the ultimate outcome.

Environmental Remediation

In previous years, the Company committed to a plan to remediate environmental contamination of the groundwater at and adjacent to its Lindsay, Nebraska facility (the “site”). The current estimated aggregate accrued cost of $13.1 million is based on consideration of remediation options which the Company believes could be successful in meeting the long-term regulatory requirements of the site. The Company submitted a revised remedial alternatives evaluation report to the U.S. Environmental Protection Agency (“EPA”) and the Nebraska Department of Environment and Energy (the “NDEE”) in August 2020 to review remediation alternatives and proposed plans for the site. While the proposed remediation plan is preliminary and has not been approved by the EPA or the NDEE, they have recently approved an in situ thermal remediation pilot study to be conducted by the Company at a specific location on the site. The Company commenced implementation of the pilot program in the second half of calendar 2022 and expects to complete the pilot program in calendar 2023. Of the total liability as of February 28, 2023, $10.1 million was calculated on a discounted basis using a discount rate of 1.2%, which represents a risk-free rate. This discounted portion of the liability amounts to $11.4 million on an undiscounted basis.

The Company accrues the anticipated cost of investigation and remediation when the obligation is probable and can be reasonably estimated. While a definitive plan has not been formally approved by the EPA, the Company believes the current accrual is a good faith estimate of the long-term cost of remediation at this site; however, the estimate of costs and their timing could change as a result of a number of factors, including but not limited to (1) EPA input on the proposed remediation plan and any changes which the EPA may subsequently require, (2) effectiveness of the in situ thermal pilot remediation pilot study, (3) refinement of cost estimates and length of time required to complete remediation and post-remediation operations and maintenance, (4) effectiveness of the technology chosen in remediation of the site as well as changes in technology that may be available in the future, and (5) unforeseen circumstances existing at the site. As a result of these factors, the actual amount of costs incurred by the Company in connection with the remediation of contamination of its Lindsay, Nebraska site

could exceed the amounts accrued for this expense at this time. While any revisions could be material to the operating results of any fiscal quarter or fiscal year, the Company does not expect such additional expenses would have a material adverse effect on its liquidity or financial condition.

The following table summarizes the environmental remediation liability classifications included in the condensed consolidated balance sheets as of February 28, 2023, February 28, 2022, and August 31, 2022:

($ in thousands)	February 28, 2023		February 28, 2022		August 31, 2022
Other current liabilities	$	3,097	$	777	$	4,179
Other noncurrent liabilities		9,975		15,155		10,967
Total environmental remediation liabilities	$	13,072	$	15,932	$	15,146

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Warranties

6 Months Ended

Feb. 28, 2023

Product Warranties Disclosures [Abstract]

Warranties

Note 9 – Warranties

The following table provides the changes in the Company’s product warranties:

	Three months ended						Six months ended
($ in thousands)	February 28, 2023			February 28, 2022			February 28, 2023			February 28, 2022
Product warranty accrual balance, beginning of period	$	13,602		$	12,379		$	14,080		$	12,736
Liabilities accrued for warranties during the period		2,888			1,825			4,128			4,219
Warranty claims paid during the period		(2,318	)		(1,250	)		(4,036	)		(4,001	)
Changes in estimates		-			(136	)		-			(136	)
Product warranty accrual balance, end of period	$	14,172		$	12,818		$	14,172		$	12,818

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Share-Based Compensation

6 Months Ended

Feb. 28, 2023

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation

Note 10 – Share-Based Compensation

The Company’s current share-based compensation plans, approved by the stockholders of the Company, provides for awards of stock options, restricted shares, restricted stock units (“RSUs”), stock appreciation rights, performance shares, and performance stock units (“PSUs”) to employees and non-employee directors of the Company. The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. Share-based compensation expense was $1.7 million and $1.3 million for the three months ended February 28, 2023 and 2022, respectively, and $3.3 million and $2.5 million for the six months ended February 28, 2023 and 2022, respectively.

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Other Current Liabilities

6 Months Ended

Feb. 28, 2023

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

Note 11 – Other Current Liabilities

($ in thousands)	February 28, 2023		February 28, 2022		August 31, 2022
Other current liabilities:
Contract liabilities	$	16,782	$	38,454	$	29,494
Compensation and benefits		16,490		15,212		23,148
Warranties		14,172		12,818		14,080
Tax related liabilities		9,044		1,532		7,820
Dealer related liabilities		8,969		4,616		8,396
Accrued environmental liabilities		3,097		777		4,179
Operating lease liabilities		3,069		3,428		3,159
Deferred revenue - lease		1,223		1,031		1,064
Accrued insurance		1,049		1,119		1,193
Other		5,671		7,850		8,151
Total other current liabilities	$	79,566	$	86,837	$	100,684

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Share Repurchases

6 Months Ended

Feb. 28, 2023

Equity [Abstract]

Share Repurchases

Note 12 – Share Repurchases

There were no shares repurchased during the three or six months ended February 28, 2023 and 2022 under the Company’s share repurchase program. The remaining amount available under the repurchase program was $63.7 million as of February 28, 2023.

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Industry Segment Information

6 Months Ended

Feb. 28, 2023

Segment Reporting [Abstract]

Industry Segment Information

Note 13 – Industry Segment Information

The Company manages its business activities in two reportable segments: irrigation and infrastructure. The Company evaluates the performance of its reportable segments based on segment revenues, gross profit and operating income, with operating income for segment purposes excluding unallocated corporate general and administrative expenses, interest income, interest expense, other income and expenses and income taxes. Operating income for segment purposes includes general and administrative expenses, selling expenses, engineering and research expenses and other overhead charges directly attributable to the segment. There are no inter-segment sales included in the amounts disclosed. The Company had no single customer who represented 10 percent or more of its total revenues during the three or six months ended February 28, 2023 or 2022.

Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move and hose reel irrigation systems and large diameter steel tubing as well as various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial internet of things, or “IIoT”, solutions. The irrigation reporting segment consists of one operating segment.

Infrastructure – This reporting segment includes the manufacture and marketing of moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment. The infrastructure reporting segment consists of one operating segment.

	Three months ended						Six months ended
($ in thousands)	February 28, 2023			February 28, 2022			February 28, 2023			February 28, 2022
Operating revenues:
Irrigation:
North America	$	90,354		$	100,730		$	174,288		$	179,705
International		57,422			80,029			125,571			146,962
Irrigation total		147,776			180,759			299,859			326,667
Infrastructure		18,465			19,378			42,541			39,621
Total operating revenues	$	166,241		$	200,137		$	342,400		$	366,288
Operating income:
Irrigation	$	32,820		$	24,734		$	61,461		$	41,946
Infrastructure		2,019			324			5,391			3,090
Corporate		(7,574	)		(6,720	)		(14,989	)		(13,337	)
Total operating income		27,265			18,338			51,863			31,699
Interest and other expense, net		(1,532	)		866			(2,125	)		(3,019	)
Earnings before income taxes	$	25,733		$	19,204		$	49,738		$	28,680

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Basis of Presentation (Policies)

6 Months Ended

Feb. 28, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

New Accounting Pronouncements

Recent Accounting Guidance Adopted

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting and related disclosure requirements for income taxes. The Company adopted this standard in the first quarter of its fiscal 2022. The adoption of this ASU did not have a material impact on its condensed consolidated financial statements.

Recent Accounting Guidance Not Yet Adopted

In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs, which requires annual and interim disclosures for entities that finance its purchases with supplier finance programs. These amendments are effective for the Company beginning in its fiscal 2024, except for the amendment on rollforward information, which is effective for the Company beginning in its fiscal 2025. The adoption of this ASU is not expected to have a material impact on its condensed consolidated financial statements.

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Revenue Recognition (Tables)

6 Months Ended

Feb. 28, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue by Segment

A breakout by segment of revenue recognized over time versus at a point in time for the three and six months ended February 28, 2023 and 2022 is as follows:

	Three months ended						Three months ended
	February 28, 2023						February 28, 2022
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	141,528	$	14,697	$	156,225	$	175,251	$	16,010	$	191,261
Over time		6,248		1,657		7,905		5,508		1,467		6,975
Revenue from the contracts with customers		147,776		16,354		164,130		180,759		17,477		198,236
Lease revenue		—		2,111		2,111		—		1,901		1,901
Total operating revenues	$	147,776	$	18,465	$	166,241	$	180,759	$	19,378	$	200,137
	Six months ended						Six months ended
	February 28, 2023						February 28, 2022
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	287,245	$	34,927	$	322,172	$	315,383	$	30,723	$	346,106
Over time		12,614		3,111		15,725		11,284		2,209		13,493
Revenue from the contracts with customers		299,859		38,038		337,897		326,667		32,932		359,599
Lease revenue		—		4,503		4,503		—		6,689		6,689
Total operating revenues	$	299,859	$	42,541	$	342,400	$	326,667	$	39,621	$	366,288

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Net Earnings Per Share (Tables)

6 Months Ended

Feb. 28, 2023

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Earnings Per Share

The following table shows the computation of basic and diluted net earnings per share for the three and six months ended February 28, 2023 and 2022:

	Three months ended				Six months ended
($ and shares in thousands, except per share amounts)	February 28, 2023		February 28, 2022		February 28, 2023		February 28, 2022
Numerator:
Net earnings	$	18,052	$	14,566	$	36,269	$	22,467
Denominator:
Weighted average shares outstanding		11,007		10,974		10,998		10,950
Diluted effect of stock awards		56		40		70		70
Weighted average shares outstanding assuming    dilution		11,063		11,014		11,068		11,020
Basic net earnings per share	$	1.64	$	1.33	$	3.30	$	2.05
Diluted net earnings per share	$	1.63	$	1.32	$	3.28	$	2.04

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Inventories (Tables)

6 Months Ended

Feb. 28, 2023

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following as of February 28, 2023, February 28, 2022, and August 31, 2022:

($ in thousands)	February 28, 2023			February 28, 2022			August 31, 2022
Raw materials and supplies	$	89,968		$	86,010		$	93,469
Work in process		9,837			11,620			12,603
Finished goods and purchased parts, net		103,067			96,724			110,022
Total inventory value before LIFO adjustment		202,872			194,354			216,094
Less adjustment to LIFO value		(24,169	)		(7,026	)		(22,318	)
Inventories, net	$	178,703		$	187,328		$	193,776

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Long-Term Debt (Tables)

6 Months Ended

Feb. 28, 2023

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

The following table sets forth the outstanding principal balances of the Company’s long-term debt as of the dates shown:

($ in thousands)	February 28, 2023			February 28, 2022			August 31, 2022
Series A Senior Notes	$	115,000		$	115,000		$	115,000
Elecsys Series 2006A Bonds		822			1,042			931
Total debt		115,822			116,042			115,931
Less current portion		(224	)		(220	)		(222	)
Less unamortized debt issuance costs		(345	)		(394	)		(368	)
Total long-term debt	$	115,253		$	115,428		$	115,341

Schedule of Principal Payments Due on Long-Term Debt

Principal payments on the debt are due as follows:

Due within	$ in thousands
1 year	$	224
2 years		228
3 years		232
4 years		138
Thereafter		115,000
	$	115,822

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Fair Value Measurements (Tables)

6 Months Ended

Feb. 28, 2023

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liabilities Measured at Fair Value

The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of February 28, 2023, February 28, 2022, and August 31, 2022. There were no transfers between any levels for the periods presented.

	February 28, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	97,675	$	—	$	—	$	97,675
Marketable securities:
Corporate bonds		—		6,976		—		6,976
U.S. treasury securities		—		1,787		—		1,787
Derivative asset		—		3,520		—		3,520
	February 28, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	68,951	$	—	$	—	$	68,951
Marketable securities:
Corporate bonds		—		20,322		—		20,322
U.S. treasury securities		—		4,612		—		4,612
	August 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	105,048	$	—	$	—	$	105,048
Marketable securities:
Corporate bonds		—		9,668		—		9,668
U.S. treasury securities		—		1,792		—		1,792
Derivative asset		—		5,505		—		5,505

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Commitments and Contingencies (Tables)

6 Months Ended

Feb. 28, 2023

Commitments and Contingencies Disclosure [Abstract]

Summary of Undiscounted Environmental Remediation Liability Classifications

The following table summarizes the environmental remediation liability classifications included in the condensed consolidated balance sheets as of February 28, 2023, February 28, 2022, and August 31, 2022:

($ in thousands)	February 28, 2023		February 28, 2022		August 31, 2022
Other current liabilities	$	3,097	$	777	$	4,179
Other noncurrent liabilities		9,975		15,155		10,967
Total environmental remediation liabilities	$	13,072	$	15,932	$	15,146

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Warranties (Tables)

6 Months Ended

Feb. 28, 2023

Product Warranties Disclosures [Abstract]

Schedule of Product Warranty Liability

The following table provides the changes in the Company’s product warranties:

	Three months ended						Six months ended
($ in thousands)	February 28, 2023			February 28, 2022			February 28, 2023			February 28, 2022
Product warranty accrual balance, beginning of period	$	13,602		$	12,379		$	14,080		$	12,736
Liabilities accrued for warranties during the period		2,888			1,825			4,128			4,219
Warranty claims paid during the period		(2,318	)		(1,250	)		(4,036	)		(4,001	)
Changes in estimates		-			(136	)		-			(136	)
Product warranty accrual balance, end of period	$	14,172		$	12,818		$	14,172		$	12,818

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Other Current Liabilities (Tables)

6 Months Ended

Feb. 28, 2023

Other Liabilities Disclosure [Abstract]

Schedule of Other Liabilities Current

($ in thousands)	February 28, 2023		February 28, 2022		August 31, 2022
Other current liabilities:
Contract liabilities	$	16,782	$	38,454	$	29,494
Compensation and benefits		16,490		15,212		23,148
Warranties		14,172		12,818		14,080
Tax related liabilities		9,044		1,532		7,820
Dealer related liabilities		8,969		4,616		8,396
Accrued environmental liabilities		3,097		777		4,179
Operating lease liabilities		3,069		3,428		3,159
Deferred revenue - lease		1,223		1,031		1,064
Accrued insurance		1,049		1,119		1,193
Other		5,671		7,850		8,151
Total other current liabilities	$	79,566	$	86,837	$	100,684

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Industry Segment Information (Tables)

6 Months Ended

Feb. 28, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

	Three months ended						Six months ended
($ in thousands)	February 28, 2023			February 28, 2022			February 28, 2023			February 28, 2022
Operating revenues:
Irrigation:
North America	$	90,354		$	100,730		$	174,288		$	179,705
International		57,422			80,029			125,571			146,962
Irrigation total		147,776			180,759			299,859			326,667
Infrastructure		18,465			19,378			42,541			39,621
Total operating revenues	$	166,241		$	200,137		$	342,400		$	366,288
Operating income:
Irrigation	$	32,820		$	24,734		$	61,461		$	41,946
Infrastructure		2,019			324			5,391			3,090
Corporate		(7,574	)		(6,720	)		(14,989	)		(13,337	)
Total operating income		27,265			18,338			51,863			31,699
Interest and other expense, net		(1,532	)		866			(2,125	)		(3,019	)
Earnings before income taxes	$	25,733		$	19,204		$	49,738		$	28,680

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Revenue Recognition (Schedule of Disaggregation of Revenue by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	$ 164,130	$ 198,236	$ 337,897	$ 359,599
Lease revenue	2,111	1,901	4,503	6,689
Total operating revenues	166,241	200,137	342,400	366,288
Point in Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	156,225	191,261	322,172	346,106
Over Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	7,905	6,975	15,725	13,493
Irrigation [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	147,776	180,759	299,859	326,667
Lease revenue	0	0	0	0
Total operating revenues	147,776	180,759	299,859	326,667
Irrigation [Member] | Point in Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	141,528	175,251	287,245	315,383
Irrigation [Member] | Over Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	6,248	5,508	12,614	11,284
Infrastructure [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	16,354	17,477	38,038	32,932
Lease revenue	2,111	1,901	4,503	6,689
Total operating revenues	18,465	19,378	42,541	39,621
Infrastructure [Member] | Point in Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	14,697	16,010	34,927	30,723
Infrastructure [Member] | Over Time [Member]
Disaggregation Of Revenue [Line Items]
Revenue from the contracts with customers	$ 1,657	$ 1,467	$ 3,111	$ 2,209

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Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Aug. 31, 2022
Disaggregation Of Revenue [Line Items]
Unsatisfied performance obligation amount	$ 1.8
Revenue recognized	25.0	$ 25.6
Other Current Assets [Member]
Disaggregation Of Revenue [Line Items]
Contract assets	1.1	1.1	$ 0.9
Other Current Liabilities [Member]
Disaggregation Of Revenue [Line Items]
Contract liabilities	$ 17.9	$ 39.7	$ 30.6

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Net Earnings Per Share (Schedule of Computation of Basic and Diluted Net Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Earnings Per Share [Abstract]
Net earnings	$ 18,052	$ 14,566	$ 36,269	$ 22,467
Weighted average shares outstanding	11,007	10,974	10,998	10,950
Diluted effect of stock awards	56	40	70	70
Weighted average shares outstanding assuming dilution	11,063	11,014	11,068	11,020
Basic net earnings per share	$ 1.64	$ 1.33	$ 3.30	$ 2.05
Diluted net earnings per share	$ 1.63	$ 1.32	$ 3.28	$ 2.04

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Income Taxes [Line Items]
Income tax expense	$ 7,681	$ 4,638	$ 13,469	$ 6,213
Estimated annual effective income tax rate			28.20%	25.50%
Tax benefit related to vesting of share based compensation awards			$ 600	$ 1,100

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Inventories (Schedule of Inventories) (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022	Feb. 28, 2022
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 89,968	$ 93,469	$ 86,010
Work in process	9,837	12,603	11,620
Finished goods and purchased parts, net	103,067	110,022	96,724
Total inventory value before LIFO adjustment	202,872	216,094	194,354
Less adjustment to LIFO value	(24,169)	(22,318)	(7,026)
Inventories, net	$ 178,703	$ 193,776	$ 187,328

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Inventories (Narrative) (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022	Feb. 28, 2022
Inventory [Line Items]
Inventories, net	$ 178,703	$ 193,776	$ 187,328
LIFO, basis amount	47,200	55,500	53,500
FIFO, basis amount	$ 131,500	$ 138,300	$ 133,900

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Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022	Feb. 28, 2022
Debt Instrument [Line Items]
Total debt	$ 115,822	$ 115,931	$ 116,042
Less current portion	(224)	(222)	(220)
Less unamortized debt issuance costs	(345)	(368)	(394)
Total long-term debt	115,253	115,341	115,428
Elecsys Series 2006A Bonds [Member]
Debt Instrument [Line Items]
Total debt	822	931	1,042
Series A Senior Notes [Member]
Debt Instrument [Line Items]
Total debt	$ 115,000	$ 115,000	$ 115,000

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Long-Term Debt (Schedule of Principal Payments Due on Long-Term Debt) (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022	Feb. 28, 2022
Debt Disclosure [Abstract]
1 year	$ 224
2 years	228
3 years	232
4 years	138
Thereafter	115,000
Total debt	$ 115,822	$ 115,931	$ 116,042

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Fair Value Measurements (Schedule of Financial Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022	Feb. 28, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 97,675	$ 105,048	$ 68,951
Marketable securities:
Derivative assets	3,520	5,505
Corporate Bonds [Member]
Marketable securities:
Marketable securities	6,976	9,668	20,322
U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	1,787	1,792	4,612
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	97,675	105,048	68,951
Marketable securities:
Derivative assets	0	0
Level 1 [Member] | Corporate Bonds [Member]
Marketable securities:
Marketable securities	0	0	0
Level 1 [Member] | U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	0	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0	0
Marketable securities:
Derivative assets	3,520	5,505
Level 2 [Member] | Corporate Bonds [Member]
Marketable securities:
Marketable securities	6,976	9,668	20,322
Level 2 [Member] | U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	1,787	1,792	4,612
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0	0
Marketable securities:
Derivative assets	0	0
Level 3 [Member] | Corporate Bonds [Member]
Marketable securities:
Marketable securities	0	0	0
Level 3 [Member] | U.S. Treasury Securities [Member]
Marketable securities:
Marketable securities	$ 0	$ 0	$ 0

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Fair Value Measurements (Narrative) (Details) € in Millions		6 Months Ended
	Mar. 28, 2022 USD ($)	Feb. 28, 2023 USD ($)	Feb. 28, 2022 USD ($)	Mar. 28, 2022 EUR (€)
Percentage of marketable securities investments mature within one year		64.00%
Percentage of marketable securities investments mature within one to three years		36.00%
Notional amount	$ 50,000,000.0			€ 45.6
Maturity date	Mar. 30, 2027
Fair Value, Measurements, Nonrecurring [Member]
Assets fair value adjustments		$ 0	$ 0
Liabilities fair value adjustments		$ 0	$ 0

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Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Feb. 28, 2023	Aug. 31, 2022	Feb. 28, 2022
Commitments And Contingencies [Line Items]
Liabilities	$ 286,808	$ 317,295	$ 320,046
Lindsay, Nebraska Facility [Member]
Commitments And Contingencies [Line Items]
Current environmental remediation accrual	$ 13,100
Liabilities discounted risk Free interest rate	1.20%
Discounted portion of liabilities	$ 11,400

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Commitments and Contingencies (Summary of Undiscounted Environmental Remediation Liability Classifications) (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022	Feb. 28, 2022
Commitments and Contingencies Disclosure [Abstract]
Other current liabilities	$ 3,097	$ 4,179	$ 777
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Current	Other Liabilities, Current	Other Liabilities, Current
Other noncurrent liabilities	$ 9,975	$ 10,967	$ 15,155
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Total environmental remediation liabilities	$ 13,072	$ 15,146	$ 15,932

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Warranties (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Product Warranties Disclosures [Abstract]
Product warranty accrual balance, beginning of period	$ 13,602	$ 12,379	$ 14,080	$ 12,736
Liabilities accrued for warranties during the period	2,888	1,825	4,128	4,219
Warranty claims paid during the period	(2,318)	(1,250)	(4,036)	(4,001)
Changes in estimates	0	(136)	0	(136)
Product warranty accrual balance, end of period	$ 14,172	$ 12,818	$ 14,172	$ 12,818

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Share-Based Compensation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation expense	$ 1.7	$ 1.3	$ 3.3	$ 2.5

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Other Current Liabilities (Schedule of Other Liabilities Current) (Details) - USD ($) $ in Thousands	Feb. 28, 2023	Aug. 31, 2022	Feb. 28, 2022
Other Liabilities Disclosure [Abstract]
Contract liabilities	$ 16,782	$ 29,494	$ 38,454
Compensation and benefits	16,490	23,148	15,212
Warranties	14,172	14,080	12,818
Tax related liabilities	9,044	7,820	1,532
Dealer related liabilities	8,969	8,396	4,616
Accrued environmental liabilities	3,097	4,179	777
Operating lease liabilities	3,069	3,159	3,428
Deferred revenue - lease	1,223	1,064	1,031
Accrued insurance	1,049	1,193	1,119
Other	5,671	8,151	7,850
Total other current liabilities	$ 79,566	$ 100,684	$ 86,837

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Share Repurchases (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Equity [Abstract]
Number of shares of common stock repurchased during the period	0	0	0	0
Remaining amount available under the repurchase program	$ 63.7		$ 63.7

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Industry Segment Information (Narrative) (Details)	6 Months Ended
	Feb. 28, 2023 Segment Customer	Feb. 28, 2022 Customer
Segment Reporting Information [Line Items]
Number of reportable segments	2
Irrigation [Member]
Segment Reporting Information [Line Items]
Number of operating segments	1
Infrastructure [Member]
Segment Reporting Information [Line Items]
Number of operating segments	1
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Segment Reporting Information [Line Items]
Number of major customers | Customer	0	0
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Minimum [Member]
Segment Reporting Information [Line Items]
Concentration risk, percentage	10.00%	10.00%

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Industry Segment Information (Schedule of Segment Reporting Information Impacts on Statement of Operations, by Segment) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Feb. 28, 2023	Feb. 28, 2022	Feb. 28, 2023	Feb. 28, 2022
Segment Reporting Information [Line Items]
Total operating revenues	$ 166,241	$ 200,137	$ 342,400	$ 366,288
Total operating income	27,265	18,338	51,863	31,699
Interest and other expense, net	(1,532)	866	(2,125)	(3,019)
Earnings before income taxes	25,733	19,204	49,738	28,680
Irrigation [Member]
Segment Reporting Information [Line Items]
Total operating revenues	147,776	180,759	299,859	326,667
Total operating income	32,820	24,734	61,461	41,946
Irrigation [Member] | North America [Member]
Segment Reporting Information [Line Items]
Total operating revenues	90,354	100,730	174,288	179,705
Irrigation [Member] | International [Member]
Segment Reporting Information [Line Items]
Total operating revenues	57,422	80,029	125,571	146,962
Infrastructure [Member]
Segment Reporting Information [Line Items]
Total operating revenues	18,465	19,378	42,541	39,621
Total operating income	2,019	324	5,391	3,090
Corporate Segment
Segment Reporting Information [Line Items]
Total operating income	$ (7,574)	$ (6,720)	$ (14,989)	$ (13,337)