EX-99.1 2 d464021dex991.htm EX-99.1 EX-99.1

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 Geralyn DeBusk

Vice President & Chief Financial Officer

     972-458-8000
402-827-6579     

Lindsay Corporation Reports Fiscal 2013 First Quarter Results

OMAHA, Neb., January 8, 2013—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its first quarter ended November 30, 2012.

First Quarter Results

First quarter fiscal 2013 revenues of $147.4 million increased 24 percent from $119.2 million in the same prior year period. Net earnings were $14.7 million or $1.15 per diluted share compared with $2.9 million or $0.23 per diluted share in the prior year. Fiscal 2012 operating costs included $7.2 million of accrued expenses, 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.

Total irrigation equipment revenues increased 33 percent to $134.2 million from $100.8 million in the prior fiscal year’s first quarter. Domestic irrigation revenues of $96.5 million increased 59 percent, while international irrigation revenues of $37.7 million decreased 6 percent due to lower project revenues in the Middle East. Infrastructure revenues decreased 29 percent to $13.2 million.

Gross margin was 29.1 percent compared to 25.4 percent in the prior year’s first quarter. Irrigation gross margins increased by approximately 4 percentage points due to lower input costs, a strong pricing environment and fixed cost leverage on higher sales. Infrastructure margins decreased by approximately 4 percentage points due to sales mix and deleverage of fixed costs from lower sales.

Operating expenses were $20.6 million compared to $25.2 million in prior fiscal year. Current year expenses included higher personnel related expenses and increased research and development, while the prior year period included accrued environmental expenses of $7.2 million. Operating expenses were 14.0 percent of sales in the first quarter of fiscal 2013 compared with 21.1 percent of sales in the prior year period. Operating margins of 15.1 percent increased from 4.3 percent in the prior year period.

Cash and cash equivalents of $152.2 million were $43.4 million higher compared to the end of the first quarter last year, while debt decreased $4.3 million.

Backlog of unshipped orders at November 30, 2012 was $85.1 million compared with $52.8 million at November 30, 2011 and $57.1 million at August 31, 2012.


Outlook

Rick Parod, president and chief executive officer, commented, “Irrigation order volumes remained extremely robust throughout the first quarter as drought conditions combined with positive farmer sentiment, farm incomes and commodity prices continued into fiscal 2013. Infrastructure sales were disappointing, although we remain optimistic that we will see improving trends over the course of the year.”

Parod added, “We believe the quarter end backlog represents pulling forward some volume, at least in part, from the second half of fiscal 2013. As is always the case, full year results will be dependent on conditions for agriculture equipment sales through the peak selling season this spring. 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.”

First-Quarter Conference Call

Lindsay’s fiscal 2013 first 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 # 82593517. 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 second 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 November 30, 2012 Lindsay had approximately 12.8 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.

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

Concerning Forward-looking Statements

This release contains forward-looking statements that are subject to risks and uncertainties and which reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, company performance and financial results. 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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

     Three months ended  

($ and shares in thousands, except per share amounts)

   November 30,
2012
    November 30,
2011
 

Operating revenues

   $ 147,370      $ 119,205   

Cost of operating revenues

     104,513        88,957   
  

 

 

   

 

 

 

Gross profit

     42,857        30,248   
  

 

 

   

 

 

 

Operating expenses:

    

Selling expense

     7,321        6,944   

General and administrative expense

     10,118        8,940   

Engineering and research expense

     3,154        2,056   

Environmental remediation expense

     —          7,225   
  

 

 

   

 

 

 

Total operating expenses

     20,593        25,165   
  

 

 

   

 

 

 

Operating income

     22,264        5,083   

Other income (expense):

    

Interest expense

     (143     (143

Interest income

     138        96   

Other income (expense), net

     124        (595
  

 

 

   

 

 

 

Earnings before income taxes

     22,383        4,441   

Income tax expense

     7,655        1,520   
  

 

 

   

 

 

 

Net earnings

   $ 14,728      $ 2,921   
  

 

 

   

 

 

 

Earnings per share:

    

Basic

   $ 1.15      $ 0.23   

Diluted

   $ 1.15      $ 0.23   

Shares used in computing earnings per share:

    

Basic

     12,756        12,682   

Diluted

     12,853        12,764   

Cash dividends declared per share

   $ 0.115      $ 0.090   


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

 

     Three months ended  

($ in thousands)

   November 30,
2012
    November 30,
2011
 

Net earnings

   $ 14,728      $ 2,921   
  

 

 

   

 

 

 

Other comprehensive income (loss):

    

Defined benefit pension plan adjustment, net of tax

     33        26   

Unrealized gain on cash flow hedges, net of tax

     26        72   

Foreign currency translation adjustment, net of hedging activities, net of tax

     (41     (4,131
  

 

 

   

 

 

 

Total other comprehensive income (loss), net of tax (benefit) expense of ($393) and $139

     18        (4,033
  

 

 

   

 

 

 

Total comprehensive income (loss)

   $ 14,746      $ (1,112
  

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

($ and shares in thousands, except par values)

   November 30,
2012
    November 30,
2011
    August 31,
2012
 

ASSETS

      

Current Assets:

      

Cash and cash equivalents

   $ 152,173      $ 108,731      $ 143,444   

Receivables, net of allowance of $1,645, $2,171 and $1,717

     88,893        76,671        82,565   

Inventories, net

     67,250        57,646        52,873   

Deferred income taxes

     8,171        8,980        9,505   

Other current assets

     10,719        11,787        10,478   
  

 

 

   

 

 

   

 

 

 

Total current assets

     327,206        263,815        298,865   
  

 

 

   

 

 

   

 

 

 

Property, Plant and Equipment:

      

Cost

     139,032        131,555        136,695   

Less accumulated depreciation

     (82,947     (74,580     (80,515
  

 

 

   

 

 

   

 

 

 

Property, plant and equipment, net

     56,085        56,975        56,180   
  

 

 

   

 

 

   

 

 

 

Intangibles, net

     24,410        27,494        25,070   

Goodwill

     30,114        30,390        29,961   

Other noncurrent assets

     5,063        5,408        5,455   
  

 

 

   

 

 

   

 

 

 

Total assets

   $ 442,878      $ 384,082      $ 415,531   
  

 

 

   

 

 

   

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current Liabilities:

      

Accounts payable

   $ 50,662      $ 39,955      $ 31,372   

Current portion of long-term debt

     3,214        4,286        4,285   

Other current liabilities

     39,141        38,072        44,781   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     93,017        82,313        80,438   
  

 

 

   

 

 

   

 

 

 

Pension benefits liabilities

     6,749        6,173        6,821   

Long-term debt

     —          3,214        —     

Deferred income taxes

     9,622        10,433        9,984   

Other noncurrent liabilities

     7,417        8,128        7,450   
  

 

 

   

 

 

   

 

 

 

Total liabilities

     116,805        110,261        104,693   
  

 

 

   

 

 

   

 

 

 

Shareholders’ Equity:

      

Preferred stock of $1 par value- Authorized 2,000 shares; none issued

     —          —          —     

Common stock of $1 par value- Authorized 25,000 shares; 18,531 issued

     18,531        18,397        18,421   

Capital in excess of stated value

     44,995        39,446        43,140   

Retained earnings

     354,367        304,510        341,115   

Less treasury stock (at cost, 5,698 shares)

     (90,961     (90,961     (90,961

Accumulated other comprehensive (loss) income, net

     (859     2,429        (877
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     326,073        273,821        310,838   
  

 

 

   

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 442,878      $ 384,082      $ 415,531   
  

 

 

   

 

 

   

 

 

 


Lindsay Corporation and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

     Three months ended  

($ in thousands)

   November 30,
2012
    November 30,
2011
 

CASH FLOWS FROM OPERATING ACTIVITIES:

    

Net earnings

   $ 14,728     $ 2,921  

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

    

Depreciation and amortization

     3,130       3,125  

Provision for uncollectible accounts receivable

     199       47  

Deferred income taxes

     (782     (2,596

Share-based compensation expense

     1,219       898  

Other, net

     157       1,014  

Changes in assets and liabilities:

    

Receivables

     (6,441     162  

Inventories

     (14,341     (9,565

Other current assets

     (357     (928

Accounts payable

     19,210       8,775  

Other current liabilities

     (4,396     (6,399

Current taxes payable

     1,312       3,553  

Other noncurrent assets and liabilities

     (181     5,200  
  

 

 

   

 

 

 

Net cash provided by operating activities

     13,457       6,207  
  

 

 

   

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

    

Purchases of property, plant and equipment

     (2,215     (2,632

(Payment) proceeds for settlement of net investment hedge

     (1,093     476  
  

 

 

   

 

 

 

Net cash used in investing activities

     (3,308     (2,156
  

 

 

   

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

    

Proceeds from exercise of stock options

     1,082       —     

Common stock withheld for payroll tax withholdings

     (2,441     (579

Principal payments on long-term debt

     (1,072     (1,071

Excess tax benefits from share-based compensation

     2,185       135  

Dividends paid

     (1,476     (1,143
  

 

 

   

 

 

 

Net cash used in financing activities

     (1,722     (2,658
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     302       (829
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     8,729       564  

Cash and cash equivalents, beginning of period

     143,444       108,167  
  

 

 

   

 

 

 

Cash and cash equivalents, end of period

   $ 152,173     $ 108,731