EX-99.1 2 d425642dex991.htm PRESS RELEASE, DATED OCTOBER 17, 2012, ISSUED BY THE COMPANY Press Release, dated October 17, 2012, issued by the Company

Exhibit 99.1

 

LOGO      2222 NO. 111TH ST. OMAHA, NE 68164 TEL: 402-829-6800 FAX: 402-829-6836

For further information, contact:

 

LINDSAY CORPORATION:    HALLIBURTON INVESTOR RELATIONS:
Jim Raabe    Hala Elsherbini or GeralynDeBusk
Vice President & Chief Financial Officer    972-458-8000
402-827-6579   

Lindsay Corporation Reports Fiscal 2012 Fourth Quarter and Full Year Results

OMAHA, Neb., October 17, 2012—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its fourth quarter ended August 31, 2012.

Fourth Quarter Results

Fourth quarter fiscal 2012 total revenues of $127.8 million increased 10 percent from $116.1 million in the same prior year period. Net earnings were $8.8 million or $0.68 per diluted share compared with $5.9 million or $0.46 per diluted share in the prior fiscal year’s fourth quarter.

Total irrigation equipment revenues increased 18 percent to $107.9 million from $91.4 million in the prior fiscal year’s fourth quarter. Domestic irrigation revenues of $56.2 million increased 18 percent, while international irrigation revenues of $51.7 million increased 19 percent. Infrastructure revenues decreased 20 percent to $19.9 million primarily due to lower sales and leases of Quick-Change Moveable Barrier (QMB) product.

Gross margin was 25.6 percent compared to 25.9 percent in the prior year’s fourth quarter. Irrigation gross margins increased by approximately one percentage point primarily due to fixed cost leverage and efficiency gains over the prior year. Infrastructure margins decreased approximately six percentage points due to lower QMB sales partially offset by improved margins in road safety and diversified products.

Operating expenses were $20.1 million in the quarter compared to $20.3 million in the fourth quarter of the prior fiscal year. Current year expenses included incremental expenses of an acquired company purchased in fiscal 2011 and higher sales and marketing expenses while the prior year period included expenses associated with an ERP implementation and an adverse administrative tax ruling in a foreign business unit. Operating expenses were 15.7 percent of sales in the fourth quarter of 2012 compared with 17.5 percent of sales in the prior year period. Operating margins of 9.9 percent increased from 8.4 percent in the prior year period.

Cash and cash equivalents of $143.4 million were $35.3 million higher compared to the end of the fourth quarter last year, while debt decreased $4.3 million.

Lindsay’s backlog of unshipped orders at August 31, 2012 was $57.1 million compared with $46.0 million at August 31, 2011 and $44.5 million at May 31, 2012.


Twelve Month Results

Total revenues for the year ended August 31, 2012 were $551.3 million, a 15 percent increase from $478.9 million for the prior year period. Total irrigation equipment revenues of $475.3 million increased 28 percent from a year ago, while infrastructure revenues decreased 30 percent to $76.0 million. The Company’s operating income for the twelve-month period was $65.5 million compared to $56.6 million during the same prior year period. Net earnings were $43.3 million or $3.38 per diluted share, as compared to $36.8 million, or $2.90 per diluted share for the prior year period.

Fiscal 2012 operating costs included $7.2 million of expenses accrued in the Company’s first fiscal quarter, or $0.37 per diluted share on an after tax basis, relating to an estimated increase in the Company’s liability for environmental remediation at its Lindsay, Nebraska facility. Comparatively, fiscal 2011 included environmental remediation expense of $1.3 million, or $0.07 per diluted share after tax.

Outlook

Rick Parod, president and chief executive officer, commented, “It has been a record year for Lindsay. Irrigation sales and profits have experienced year over year increases driven by positive farmer sentiment, farm incomes and commodity prices affected by the dry weather. These same positive factors have continued into the early months of fiscal 2013.”

Parod added, “Infrastructure performance in 2012 was constrained by global government spending. However, with the recent passage of a U.S. highway bill providing funding through 2014 and the progress we have made in reducing our cost structure, we expect sales growth and profit improvement in the infrastructure business in 2013. Overall the long term fundamentals of the business remain very positive, as growth drivers of population growth, expanded food production and efficient and environmentally friendly water use remain imperative.”

Fourth-Quarter Conference Call

Lindsay’s fiscal 2012 fourth quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (888) 321-8161 domestically, or (706) 758-0065 internationally, and referring to conference ID # 34441230. Additionally, the conference call will be simulcast live on the Internet, and can be accessed via the investor relations section of the Company’s Web site, www.lindsay.com. Replays of the conference call will remain on our Web site through the end of the first quarter of fiscal 2013. The Company will have a slide presentation available to augment management’s formal presentation, which will also be accessible via the Company’s Web site.

About the Company

Lindsay manufactures and markets irrigation equipment primarily used in agricultural markets which increase or stabilize crop production while conserving water, energy, and labor. The Company also manufactures and markets infrastructure and road safety products through its wholly owned subsidiaries, Barrier Systems Inc. and Snoline S.P.A. At August 31, 2012, Lindsay had approximately 12.7 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.

For more information regarding Lindsay Corporation, see Lindsay’s Web site at www.lindsay.com. For more information on the Company’s infrastructure products, visit www.barriersystemsinc.com and www.snoline.com.

Concerning Forward-looking Statements

This release contains forward-looking statements that are subject to risks and uncertainties and which reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, company performance and financial results. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that the Company files with the Securities and Exchange Commission. Forward-looking statements include information concerning possible or assumed future results of operations of the Company and those statements preceded by, followed by or including the words “anticipate,” “estimate,” “believe,” “intend,” “expect,” “outlook,” “could,” “may,” “should,” “will,” or similar expressions. 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. The Company undertakes no obligation to update any forward-looking information contained in this press release.


Lindsay Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

     Three months ended
August 31,
    Twelve months ended
August 31,
 

($ in thousands, except per share amounts)

   2012     2011     2012     2011  

Operating revenues

   $ 127,817      $ 116,110      $ 551,255      $ 478,890   

Cost of operating revenues

     95,069        86,056        402,737        349,105   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     32,748        30,054        148,518        129,785   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses:

        

Selling expense

     6,968        6,984        28,104        27,842   

General and administrative expense

     10,434        10,898        38,198        33,659   

Engineering and research expense

     2,654        2,278        9,481        10,403   

Environmental remediation expense

     —          120        7,225        1,295   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     20,056        20,280        83,008        73,199   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     12,692        9,774        65,510        56,586   

Other income (expense):

        

Interest expense

     (116     (171     (492     (762

Interest income

     177        165        504        315   

Other income (expense), net

     (100     9        (414     375   
  

 

 

   

 

 

   

 

 

   

 

 

 

Earnings before income taxes

     12,653        9,777        65,108        56,514   

Income tax provision

     3,894        3,875        21,831        19,712   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net earnings

   $ 8,759      $ 5,902      $ 43,277      $ 36,802   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic net earnings per share

   $ 0.69      $ 0.47      $ 3.41      $ 2.93   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net earnings per share

   $ 0.68      $ 0.46      $ 3.38      $ 2.90   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     12,718        12,624        12,704        12,560   

Diluted effect of stock equivalents

     125        113        106        132   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding assuming dilution

     12,843        12,737        12,810        12,692   
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash dividends per share

   $ 0.115      $ 0.090      $ 0.385      $ 0.345   
  

 

 

   

 

 

   

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONSOLIDATED BALANCE SHEETS

 

($ and shares in thousands, except par values)

   (Unaudited)
August 31,
2012
    August 31,
2011
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 143,444      $ 108,167   

Receivables, net

     82,565        79,006   

Inventories, net

     52,873        49,524   

Deferred income taxes

     9,505        8,598   

Other current assets

     10,478        12,398   
  

 

 

   

 

 

 

Total current assets

     298,865        257,693   

Property, plant and equipment, net

     56,180        58,465   

Other intangible assets, net

     25,070        28,639   

Goodwill

     29,961        30,943   

Other noncurrent assets

     5,455        5,404   
  

 

 

   

 

 

 

Total assets

   $ 415,531      $ 381,144   
  

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 31,372      $ 32,153   

Current portion of long-term debt

     4,285        4,286   

Other current liabilities

     44,781        42,880   
  

 

 

   

 

 

 

Total current liabilities

     80,438        79,319   

Pension benefits liabilities

     6,821        6,231   

Long-term debt

     —          4,285   

Deferred income taxes

     9,984        12,550   

Other noncurrent liabilities

     7,450        3,094   
  

 

 

   

 

 

 

Total liabilities

     104,693        105,479   
  

 

 

   

 

 

 

Shareholders’ equity:

    

Preferred stock

     —          —     

Common stock

     18,421        18,374   

Capital in excess of stated value

     43,140        39,058   

Retained earnings

     341,115        302,732   

Less treasury stock

     (90,961     (90,961

Accumulated other comprehensive (loss) income, net

     (877     6,462   
  

 

 

   

 

 

 

Total shareholders’ equity

     310,838        275,665   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 415,531      $ 381,144   
  

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

($ in thousands)

   Years Ended August 31,  
   2012     2011  

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net earnings

   $ 43,277      $ 36,802   

Adjustments to reconcile net earnings to net cash provided by operating activities:

    

Depreciation and amortization

     12,468        11,734   

Provision for uncollectible accounts receivable

     379        388   

Deferred income taxes

     (3,868     (2,828

Share-based compensation expense

     3,939        3,474   

Other, net

     959        208   

Changes in assets and liabilities:

    

Receivables

     (7,570     (12,626

Inventories

     (5,609     (1,826

Other current assets

     (641     (1,430

Accounts payable

     723        4,780   

Other current liabilities

     (1,602     8,223   

Current taxes payable

     5,408        (2,327

Other noncurrent assets and liabilities

     4,576        (1,517
  

 

 

   

 

 

 

Net cash provided by operating activities

     52,439        43,055   
  

 

 

   

 

 

 
    

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchases of property, plant and equipment

     (9,890     (8,405

Proceeds from sale of property, plant and equipment

     116        80   

Acquisition of business, net of cash acquired

     —          (6,180

Proceeds (payment) for settlement of net investment hedge

     2,925        (1,119
  

 

 

   

 

 

 

Net cash used in investing activities

     (6,849     (15,624
  

 

 

   

 

 

 
    

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Issuance of common stock under share-based compensation plans

     567        3,579   

Common stock withheld from share-based compensation for payroll tax withholdings

     (577     (843

Principal payments on long-term debt

     (4,286     (4,286

Excess tax benefits from share-based compensation

     387        2,487   

Dividends paid

     (4,894     (4,342
  

 

 

   

 

 

 

Net cash used in financing activities

     (8,803     (3,405
  

 

 

   

 

 

 
    

Effect of exchange rate changes on cash

     (1,510     723   
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     35,277        24,749   

Cash and cash equivalents, beginning of period

     108,167        83,418   
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 143,444      $ 108,167