LNN
$127.74
Lindsay
$.61
.48%
Earnings Details
2nd Quarter February 2022
Tuesday, April 05, 2022 6:45:00 AM
Tweet Share Watch
Summary

Lindsay Misses

Lindsay (LNN) reported 2nd Quarter February 2022 earnings of $1.32 per share on revenue of $200.1 million. The consensus earnings estimate was $1.31 per share on revenue of $187.1 million. The Earnings Whisper number was $1.36 per share. Revenue grew 39.4% 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
$1.32
Earnings Whisper
$1.36
Consensus Estimate
$1.31
Reported Revenue
$200.1 Mil
Revenue Estimate
$187.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Lindsay Corporation Reports Fiscal 2022 Second Quarter Results

  • Second quarter consolidated revenues increase 39 percent to $200.1 million with EPS of $1.32
  • Irrigation revenues increase 52 percent on continued strength in agricultural markets and favorable pricing
  • Infrastructure revenues decrease 23 percent on lower Road Zipper System® sales

OMAHA, Neb.--(BUSINESS WIRE)--Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its second quarter of fiscal 2022, which ended on February 28, 2022.

Second Quarter Summary

Revenues for the second quarter of fiscal 2022 were $200.1 million, an increase of $56.6 million, or 39 percent, compared to revenues of $143.6 million in the prior year second quarter. Net earnings for the quarter were $14.6 million, or $1.32 per diluted share, compared with net earnings of $11.9 million, or $1.08 per diluted share, for the prior year second quarter.

“Global agricultural market conditions continue to be favorable and have contributed to an increase in demand for our irrigation equipment,” said Randy Wood, President and Chief Executive Officer. “At the same time, the effects of the global pandemic continue to impact our business and create operational challenges. During the quarter we experienced a short-term disruption in labor availability in our Nebraska manufacturing facility due to an increase in employee absences caused by the Omicron variant. Our teams have continued to prioritize safety and manage well in this dynamic environment, and we were pleased to see absences decline as we completed the quarter.”

Second Quarter Segment Results

Irrigation segment revenues for the second quarter of fiscal 2022 were $180.7 million, an increase of $62.2 million, or 52 percent, compared to $118.6 million in the prior year second quarter. North America irrigation revenues of $100.7 million increased $20.6 million, or 26 percent, compared to the prior year second quarter. The increase in North America irrigation revenues resulted primarily from higher average selling prices. Unit sales volume was lower year-over-year due to the impact of Omicron-related employee absences on production and shipping capabilities. International irrigation revenues of $80.0 million increased $41.6 million, or 108 percent, compared to the prior year second quarter. The increase in international irrigation revenues resulted primarily from higher unit sales volumes, along with higher selling prices. Revenues in Brazil more than tripled compared to the prior year second quarter, and we also completed final deliveries of a large project in Egypt.

Irrigation segment operating income for the second quarter of fiscal 2022 was $24.7 million, an increase of $6.7 million, or 37 percent, compared to the prior year second quarter. Operating margin was 13.7 percent of sales, compared to 15.2 percent of sales in the prior year second quarter. The impact of higher irrigation system unit volume was partially offset by the impact of higher input costs that were not fully recovered by higher pricing. Second quarter operating results were also reduced by approximately $2.8 million resulting from the impact of the LIFO method of accounting for inventory (under which higher raw material costs are recognized in cost of goods sold rather than in ending inventory values), and by approximately $1.8 million of non-recurring expenses related to factory maintenance and outside consulting services.

Infrastructure segment revenues for the second quarter of fiscal 2022 were $19.4 million, a decrease of $5.6 million, or 23 percent, compared to $25.0 million in the prior year second quarter. The decrease resulted from lower Road Zipper System® sales and lease revenue, which were partially offset by increased sales of road safety products compared to the prior year.

Infrastructure segment operating income for the second quarter of fiscal 2022 was $0.3 million, a decrease of $6.0 million, or 95 percent, compared to the prior year second quarter. Operating margin was 1.7 percent of sales, compared to 25.4 percent of sales in the prior year second quarter. Current year results reflect lower revenues and a less favorable margin mix of revenues compared to the prior year second quarter and under absorbed overhead costs.

The backlog of unfilled orders at February 28, 2022 was $111.0 million compared with $101.4 million at February 28, 2021. A higher backlog of orders in irrigation was partially offset by a lower backlog in infrastructure.

Outlook

“Strong agricultural commodity prices and farm income projections support a solid demand environment for irrigation equipment in North America. We expect these same dynamics, along with increased concerns around food security, to drive growth in our international markets. Inflationary pressures and supply chain challenges are also expected to persist in the near term, and we continue to focus on protecting and improving margins in this environment,” said Mr. Wood. “In our infrastructure business, we are actively managing projects through our sales funnel and expect an increase in project sales in the second half of the fiscal year.”

Mr. Wood concluded, “We continue to invest in our innovation growth strategy that addresses the needs of a growing population and provides solutions that improve efficiency and promote sustainability.”

Second Quarter Conference Call

Lindsay’s fiscal 2022 second quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (833) 535-2202 in the U.S., or (412) 902-6745 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 Corporation (NYSE: LNN) is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. Established in 1955, the company has been at the forefront of research and development of innovative solutions to meet the food, fuel, fiber and transportation needs of the world’s rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic® center pivot and lateral move agricultural irrigation systems, FieldNET® remote irrigation management and scheduling technology, and industrial IoT solutions. Also a global leader in the transportation industry, Lindsay Transportation Solutions manufactures equipment to improve road safety and keep traffic moving on the world’s roads, bridges and tunnels, through the Barrier Systems®, Road Zipper® and Snoline™ brands. For more information about Lindsay Corporation, visit 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

 

 

Six months ended

 

(in thousands, except per share amounts)

 

 

February 28,
2022

 

 

 

February 28,
2021

 

 

 

February 28,
2022

 

 

 

February 28,
2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

 

200,137

 

 

$

 

143,577

 

 

$

 

366,288

 

 

$

 

252,062

 

Cost of operating revenues

 

 

 

157,193

 

 

 

 

102,403

 

 

 

 

285,907

 

 

 

 

179,480

 

Gross profit

 

 

 

42,944

 

 

 

 

41,174

 

 

 

 

80,381

 

 

 

 

72,582

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling expense

 

 

 

7,932

 

 

 

 

7,778

 

 

 

 

15,922

 

 

 

 

15,110

 

General and administrative expense

 

 

 

13,022

 

 

 

 

14,275

 

 

 

 

25,901

 

 

 

 

27,727

 

Engineering and research expense

 

 

 

3,652

 

 

 

 

3,312

 

 

 

 

6,859

 

 

 

 

6,402

 

Total operating expenses

 

 

 

24,606

 

 

 

 

25,365

 

 

 

 

48,682

 

 

 

 

49,239

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

18,338

 

 

 

 

15,809

 

 

 

 

31,699

 

 

 

 

23,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

(1,176

)

 

 

 

(1,205

)

 

 

 

(2,339

)

 

 

 

(2,406

)

Interest income

 

 

 

160

 

 

 

 

268

 

 

 

 

338

 

 

 

 

571

 

Other income (expense), net

 

 

 

1,882

 

 

 

 

(311

)

 

 

 

(1,018

)

 

 

 

(65

)

Total other income (expense)

 

 

 

866

 

 

 

 

(1,248

)

 

 

 

(3,019

)

 

 

 

(1,900

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

 

19,204

 

 

 

 

14,561

 

 

 

 

28,680

 

 

 

 

21,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

4,638

 

 

 

 

2,685

 

 

 

 

6,213

 

 

 

 

2,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

 

14,566

 

 

$

 

11,876

 

 

$

 

22,467

 

 

$

 

18,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

1.33

 

 

$

 

1.09

 

 

$

 

2.05

 

 

$

 

1.75

 

Diluted

 

$

 

1.32

 

 

$

 

1.08

 

 

$

 

2.04

 

 

$

 

1.74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

10,974

 

 

 

 

10,884

 

 

 

 

10,950

 

 

 

 

10,865

 

Diluted

 

 

 

11,014

 

 

 

 

10,981

 

 

 

 

11,020

 

 

 

 

10,934

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per share

 

$

 

0.33

 

 

$

 

0.32

 

 

$

 

0.66

 

 

$

 

0.64

 

 

LINDSAY CORPORATION AND SUBSIDIARIES

 

SUMMARY OPERATING RESULTS

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

Six months ended

 

(in thousands)

 

 

February 28,
2022

 

 

 

February 28,
2021

 

 

 

February 28,
2022

 

 

 

February 28,
2021

 

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Irrigation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

 

100,730

 

 

$

 

80,178

 

 

 

 

179,705

 

 

$

 

132,968

 

International

 

 

 

80,029

 

 

 

 

38,394

 

 

 

 

146,962

 

 

 

 

72,961

 

Irrigation segment

 

 

 

180,759

 

 

 

 

118,572

 

 

$

 

326,667

 

 

$

 

205,929

 

Infrastructure segment

 

 

 

19,378

 

 

 

 

25,005

 

 

 

 

39,621

 

 

 

 

46,133

 

Total operating revenues

 

$

 

200,137

 

 

$

 

143,577

 

 

$

 

366,288

 

 

$

 

252,062

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Irrigation segment

 

$

 

24,734

 

 

$

 

18,045

 

 

$

 

41,946

 

 

$

 

28,678

 

Infrastructure segment

 

 

 

324

 

 

 

 

6,341

 

 

 

 

3,090

 

 

 

 

10,597

 

Corporate

 

 

 

(6,720

)

 

 

 

(8,577

)

 

 

 

(13,337

)

 

 

 

(15,932

)

Total operating income

 

$

 

18,338

 

 

$

 

15,809

 

 

$

 

31,699

 

 

$

 

23,343

 

The Company manages its business activities in two reportable segments as follows:

Irrigation - This reporting segment includes the manufacture and marketing of center pivot, lateral move, and hose reel irrigation systems, 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 IoT solutions.

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.

 

LINDSAY CORPORATION AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

February 28,
2022

 

 

February 28,
2021

 

 

August 31,
2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

68,951

 

 

$

 

110,775

 

 

$

 

127,107

 

Marketable securities

 

 

 

24,934

 

 

 

 

19,555

 

 

 

 

19,604

 

Receivables, net

 

 

 

134,694

 

 

 

 

94,211

 

 

 

 

93,609

 

Inventories, net

 

 

 

187,328

 

 

 

 

121,566

 

 

 

 

145,244

 

Other current assets, net

 

 

 

34,350

 

 

 

 

29,509

 

 

 

 

30,539

 

Total current assets

 

 

 

450,257

 

 

 

 

375,616

 

 

 

 

416,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

 

92,291

 

 

 

 

89,221

 

 

 

 

91,997

 

Intangibles, net

 

 

 

19,311

 

 

 

 

22,383

 

 

 

 

20,367

 

Goodwill

 

 

 

67,679

 

 

 

 

68,087

 

 

 

 

67,968

 

Operating lease right-of-use assets

 

 

 

16,724

 

 

 

 

20,173

 

 

 

 

18,281

 

Deferred income tax assets

 

 

 

5,352

 

 

 

 

10,347

 

 

 

 

8,113

 

Other noncurrent assets, net

 

 

 

24,970

 

 

 

 

10,821

 

 

 

 

14,356

 

Total assets

 

$

 

676,584

 

 

$

 

596,648

 

 

$

 

637,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

 

74,345

 

 

$

 

39,934

 

 

$

 

45,209

 

Current portion of long-term debt

 

 

 

220

 

 

 

 

215

 

 

 

 

217

 

Other current liabilities

 

 

 

86,837

 

 

 

 

74,687

 

 

 

 

92,814

 

Total current liabilities

 

 

 

161,402

 

 

 

 

114,836

 

 

 

 

138,240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension benefits liabilities

 

 

 

5,567

 

 

 

 

6,182

 

 

 

 

5,754

 

Long-term debt

 

 

 

115,428

 

 

 

 

115,599

 

 

 

 

115,514

 

Operating lease liabilities

 

 

 

17,170

 

 

 

 

20,174

 

 

 

 

18,301

 

Deferred income tax liabilities

 

 

 

783

 

 

 

 

900

 

 

 

 

832

 

Other noncurrent liabilities

 

 

 

19,696

 

 

 

 

19,933

 

 

 

 

20,099

 

Total liabilities

 

 

 

320,046

 

 

 

 

277,624

 

 

 

 

298,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

 

19,061

 

 

 

 

18,990

 

 

 

 

18,991

 

Capital in excess of stated value

 

 

 

90,711

 

 

 

 

84,206

 

 

 

 

86,495

 

Retained earnings

 

 

 

543,355

 

 

 

 

511,728

 

 

 

 

528,130

 

Less treasury stock - at cost

 

 

 

(277,238

)

 

 

 

(277,238

)

 

 

 

(277,238

)

Accumulated other comprehensive loss, net

 

 

 

(19,351

)

 

 

 

(18,662

)

 

 

 

(17,933

)

Total shareholders' equity

 

 

 

356,538

 

 

 

 

319,024

 

 

 

 

338,445

 

Total liabilities and shareholders' equity

 

$

 

676,584

 

 

$

 

596,648

 

 

$

 

637,185

 

 

LINDSAY CORPORATION AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

(in thousands)

 

 

February 28,
2022

 

 

 

February 28,
2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net earnings

 

$

 

22,467

 

 

$

 

18,971

 

Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

9,912

 

 

 

 

9,878

 

Provision for uncollectible accounts receivable

 

 

 

322

 

 

 

 

246

 

Deferred income taxes

 

 

 

3,052

 

 

 

 

206

 

Share-based compensation expense

 

 

 

2,411

 

 

 

 

4,047

 

Unrealized foreign currency transaction gain

 

 

 

(111

)

 

 

 

(754

)

Other, net

 

 

 

627

 

 

 

 

1,804

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Receivables

 

 

 

(41,286

)

 

 

 

(10,769

)

Inventories

 

 

 

(42,412

)

 

 

 

(16,245

)

Other current assets

 

 

 

(2,541

)

 

 

 

(9,492

)

Accounts payable

 

 

 

28,757

 

 

 

 

10,962

 

Other current liabilities

 

 

 

(8,317

)

 

 

 

334

 

Other noncurrent assets and liabilities

 

 

 

(8,732

)

 

 

 

1,940

 

Net cash (used in) provided by operating activities

 

 

 

(35,851

)

 

 

 

11,128

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

 

 

(6,926

)

 

 

 

(16,556

)

Purchases of marketable securities

 

 

 

(18,468

)

 

 

 

(8,313

)

Proceeds from maturities of marketable securities

 

 

 

12,752

 

 

 

 

8,043

 

Other investing activities, net

 

 

 

(2,974

)

 

 

 

(860

)

Net cash used in investing activities

 

 

 

(15,616

)

 

 

 

(17,686

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

 

2,821

 

 

 

 

3,814

 

Common stock withheld for payroll tax obligations

 

 

 

(1,181

)

 

 

 

(1,269

)

Proceeds from employee stock purchase plan

 

 

 

235

 

 

 

 

 

Principal payments on long-term debt

 

 

 

(108

)

 

 

 

(88

)

Dividends paid

 

 

 

(7,242

)

 

 

 

(6,967

)

Net cash used in financing activities

 

 

 

(5,475

)

 

 

 

(4,510

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

 

(1,214

)

 

 

 

440

 

Net change in cash and cash equivalents

 

 

 

(58,156

)

 

 

 

(10,628

)

Cash and cash equivalents, beginning of period

 

 

 

127,107

 

 

 

 

121,403

 

Cash and cash equivalents, end of period

 

$

 

68,951

 

 

$

 

110,775

 

 

LINDSAY CORPORATION:
Brian Ketcham
Senior Vice President & Chief Financial Officer
402-827-6579

THREE PART ADVISORS:
Hala Elsherbini
214-442-0016

Source: Lindsay Corporation