LNN
$92.09
Lindsay
($.32)
(.35%)
Earnings Details
1st Quarter November 2017
Thursday, December 21, 2017 6:45:01 AM
Tweet Share Watch
Summary

Lindsay Misses

Lindsay (LNN) reported 1st Quarter November 2017 earnings of $0.30 per share on revenue of $124.5 million. The consensus earnings estimate was $0.36 per share on revenue of $117.7 million. The Earnings Whisper number was $0.36 per share. Revenue grew 12.8% on a year-over-year basis.

Lindsay Corp designs, manufactures, and sells irrigation systems used in the agricultural industry to increase or stabilize crop production while conserving water, energy, and labor. It also manufactures infrastructure products and services.

Results
Reported Earnings
$0.30
Earnings Whisper
$0.36
Consensus Estimate
$0.36
Reported Revenue
$124.5 Mil
Revenue Estimate
$117.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Lindsay Corporation Reports Fiscal 2018 First Quarter Results

North America irrigation revenues increase 28% on stronger system sales

--Large Road Zipper System(R) order added to backlog during the quarter

Lindsay Corporation (LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its first quarter ended November 30, 2017.

First Quarter Results

First quarter fiscal 2018 revenues were $124.5 million, an increase of 13% compared to revenues of $110.4 million in the prior year’s first quarter. Net earnings for the quarter were $3.2 million or $0.30 per diluted share compared with $0.9 million or $0.08 per diluted share in the prior year.

Irrigation segment revenues increased 15 percent to $103.4 million from $89.9 million in the prior year’s first quarter. North America irrigation revenues increased 28 percent to $67.8 million, driven by an increase in irrigation system sales volume that reflected a more traditional fall selling season compared to the prior year. International irrigation revenues for the first quarter were $35.6 million, a decrease of four percent compared to the first quarter of the prior year. The decrease resulted from a lower level of project sales while certain markets had higher sales compared to the prior year. Infrastructure segment revenues increased three percent to $21.2 million for the first quarter, as increased sales volume in road safety products and higher Road Zipper System(R) lease revenue were partially offset by lower revenue in other product lines.

Gross margin for the first quarter was 26.0 percent of sales compared to 25.7 percent of sales in the prior year’s first quarter, as infrastructure segment margins improved due to a more favorable product mix within road safety products and an increase in higher margin lease revenue. In the irrigation segment, improved volume leverage from higher irrigation system sales was tempered by the impact of changes in product mix and changes in the regional mix of international sales.

Operating expenses for the first quarter were $26.2 million, an increase of two percent compared to $25.6 million for the first quarter of the prior year. Operating margins were 5.0 percent of sales in the first quarter compared to 2.5 percent of sales in the first quarter of the prior year, and were improved in both the irrigation and infrastructure segments compared to the prior year.

Cash and cash equivalents at the end of the first quarter were $109.5 million compared to $121.6 million at the end of the prior fiscal year and $103.1 million at the end of the prior year’s first quarter. There were no share repurchases made during the first quarter, and a total of $63.7 million remains available under the Company’s share repurchase program as of November 30, 2017.

The backlog of unshipped orders at November 30, 2017 was $80.3 million compared with $55.9 million at November 30, 2016, with higher backlogs in both the irrigation and infrastructure segments. During the first quarter an order was received for a Road Zipper System(R) to be deployed on the Alex Fraser Bridge, which connects Richmond and New Westminster with North Delta in Greater Vancouver, Canada. The value of the contract is approximately $14.0 million and delivery is expected to begin in the third quarter of fiscal 2018.

Outlook

Tim Hassinger, President and Chief Executive Officer, commented, "We were pleased to see our fiscal year get off to a solid start in the first quarter, particularly in North America irrigation where we saw significant improvement in order flow and irrigation system sales compared to the prior year. We were also pleased to receive the order for the Alex Fraser Bridge project, which positions us well for growth in our infrastructure segment this year."

Hassinger continued, "Although commodity prices remain constrained as a result of strong yields this past growing season, grower sentiment toward capital investment is showing signs of improvement. As meaningful change in commodity prices is not expected in the near term, we will continue our focus of bringing value-added technology solutions to our customers and improving our operating performance in the current market environment."

First-Quarter Conference Call

Lindsay’s fiscal 2018 first quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (877) 317-6789 in the U.S., or (412) 317-6789 internationally, and requesting the Lindsay Corporation call. 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 next quarterly earnings release. 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 under the Lindsay Transportation Solutions trade name. At October 9, 2017 Lindsay had approximately 10.7 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.

For more information regarding Lindsay Corporation, see the Company’s Web site at www.lindsay.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 and planned financing 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 EARNINGS
(Unaudited)
Three months ended
(in thousands, except per share amounts)
November 30,
November 30,
2017
2016
Operating revenues
$ 124,526
$ 110,390
Cost of operating revenues
92,129
82,016
Gross profit
32,397
28,374
Operating expenses:
Selling expense
10,225
9,982
General and administrative expense
11,918
11,355
Engineering and research expense
4,053
4,302
Total operating expenses
26,196
25,639
Operating income
6,201
2,735
Interest expense
(1,181 )
(1,209 )
Interest income
320
165
Other expense, net
(548 )
(356 )
Earnings before income taxes
4,792
1,335
Income tax expense
1,607
462
Net earnings
$
3,185
$
873
Earnings per share:
Basic
$
0.30
$
0.08
Diluted
$
0.30
$
0.08
Shares used in computing earnings per share:
Basic
10,705
10,638
Diluted
10,740
10,666
Cash dividends declared per share
$
0.30
$
0.29
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
November 30,
November 30,
August 31,
(in thousands)
2017
2016
2017
ASSETS
Current assets:
Cash and cash equivalents
$
109,450
$
103,058
$
121,620
Receivables, net
79,774
69,774
73,850
Inventories, net
93,994
80,139
86,155
Prepaid expenses
3,555
3,295
4,384
Other current assets
9,461
18,622
6,925
Total current assets
296,234
274,888
292,934
Property, plant, and equipment, net
72,940
75,561
74,498
Intangibles, net
41,702
45,998
42,808
Goodwill
77,127
76,562
77,131
Deferred income tax assets
3,111
3,134
5,311
Other noncurrent assets, net
12,293
4,800
13,350
Total assets
$
503,407
$
480,943
$
506,032
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
41,046
$
32,533
$
36,717
Current portion of long-term debt
202
198
201
Other current liabilities
48,875
51,866
55,119
Total current liabilities
90,123
84,597
92,037
Pension benefits liabilities
6,223
6,789
6,295
Long-term debt
116,724
116,926
116,775
Deferred income tax liabilities
1,649
2,338
1,191
Other noncurrent liabilities
19,456
22,105
19,679
Total liabilities
234,175
232,755
235,977
Shareholders’ equity:
Preferred stock
-
-
-
Common stock
18,805
18,737
18,780
Capital in excess of stated value
63,191
57,548
63,006
Retained earnings
477,584
464,710
477,615
Less treasury stock - at cost
(277,238)
(277,238)
(277,238)
Accumulated other comprehensive loss, net
(13,110)
(15,569)
(12,108)
Total shareholders’ equity
269,232
248,188
270,055
Total liabilities and shareholders’ equity
$
503,407
$
480,943
$
506,032
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Three months ended
November 30,
November 30,
2017
2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings
$
3,185
$
873
Adjustments to reconcile net earnings to net cash provided
by operating activities:
Depreciation and amortization
4,335
4,035
Provision for uncollectible accounts receivable
112
(255)
Deferred income taxes
2,111
1,541
Share-based compensation expense
1,001
935
Other, net
614
388
Changes in assets and liabilities:
Receivables
(6,526)
10,436
Inventories
(8,672)
(5,741)
Prepaid expenses and other current assets
(15)
3,000
Accounts payable
4,642
415
Other current liabilities
(6,156)
(6,576)
Other noncurrent assets and liabilities
399
(947)
Net cash (used in) provided by operating activities
(4,970)
8,104
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment
(1,991)
(1,390)
Proceeds from settlement of net investment hedges
101
-
Payments for settlement of net investment hedges
(1,176)
(159)
Other investing activities, net
74
134
Net cash used in investing activities
(2,992)
(1,415)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options
132
-
Common stock withheld for payroll tax withholdings
(828)
(635)
Principal payments on long-term debt
(50)
(49)
Dividends paid
(3,216)
(3,089)
Net cash used in financing activities
(3,962)
(3,773)
Effect of exchange rate changes on cash and cash equivalents
(246)
(1,104)
Net change in cash and cash equivalents
(12,170)
1,812
Cash and cash equivalents, beginning of period
121,620
101,246
Cash and cash equivalents, end of period
$
109,450
$
103,058

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20171221005211r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20171221005211/en/

SOURCE: Lindsay Corporation

Lindsay Corporation
Brian Ketcham, 402-827-6579
Vice President & Chief Financial Officer
or
Halliburton Investor Relations:
Hala Elsherbini, 972-458-8000
or
Geralyn DeBusk, 972-458-8000