LNN
$164.50
Lindsay
($1.91)
(1.15%)
Earnings Details
2nd Quarter February 2021
Tuesday, April 06, 2021 6:45:00 AM
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Summary

Lindsay Beats

Lindsay (LNN) reported 2nd Quarter February 2021 earnings of $1.08 per share on revenue of $143.6 million. The consensus earnings estimate was $0.88 per share on revenue of $131.1 million. The Earnings Whisper number was $0.91 per share. Revenue grew 26.2% 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
$1.08
Earnings Whisper
$0.91
Consensus Estimate
$0.88
Reported Revenue
$143.6 Mil
Revenue Estimate
$131.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Lindsay Corporation Reports Fiscal 2021 Second Quarter Results

  • Second quarter operating income increased 83 percent on a 26 percent increase in revenues
  • Improved agricultural market conditions drive improved Irrigation performance
  • Infrastructure results fueled by increase in Road Zipper System® sales and leases

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 2021, which ended on February 28, 2021.

Second Quarter Summary

Revenues for the second quarter of fiscal 2021 were $143.6 million, an increase of $29.8 million, or 26 percent, compared to revenues of $113.8 million in the prior year second quarter. Net earnings for the quarter were $11.9 million, or $1.08 per diluted share, compared with net earnings of $5.5 million, or $0.51 per diluted share, for the prior year second quarter.

“Second quarter results were aided by improved agricultural market conditions as commodity prices reached their highest level in several years. We experienced strong demand for irrigation equipment throughout the quarter in North America as well as most international markets,” said Randy Wood, President and Chief Executive Officer. “Improved results in our infrastructure business resulted from higher Road Zipper System® sales and lease revenue,” Mr. Wood continued.

Second Quarter Segment Results

Irrigation segment revenues for the second quarter of fiscal 2021 increased $25.1 million, or 27 percent, to $118.6 million compared to $93.5 million in the prior year second quarter. North America irrigation revenues increased $13.1 million, or 19 percent, to $80.2 million compared to the prior year second quarter. The increase resulted primarily from higher irrigation equipment unit sales volume and higher average selling prices. The increase was partially offset by revenue from engineering project services in the prior year that did not repeat. International irrigation revenues of $38.4 million increased $12.0 million, or 45 percent, compared to the prior year second quarter. The increase resulted from higher unit sales volumes in several international markets.

Irrigation segment operating income was $18.0 million, an increase of $7.9 million, or 79 percent, compared to the prior year second quarter. Operating margin was 15.2 percent of sales, compared to 10.8 percent of sales in the prior year second quarter. The increase resulted primarily from the impact of higher irrigation system unit volume and was partially offset by the impact of higher raw material and freight costs.

Infrastructure segment revenues for the second quarter of fiscal 2021 increased $4.7 million, or 23 percent, to $25.0 million, compared to $20.3 million in the prior year second quarter. The increase resulted primarily from higher Road Zipper System® sales and lease revenue.

Infrastructure segment operating income was $6.3 million, an increase of $0.4 million, or 8 percent, compared to the prior year second quarter. Operating margin was 25.4 percent of sales, compared to 29.0 percent of sales in the prior year second quarter. Prior year operating income included a gain of $1.2 million on the sale of a building that had been held for sale.

The backlog of unfilled orders at February 28, 2021 was $101.4 million compared with $104.4 million at February 29, 2020. Included in these backlogs are amounts of $2.7 million and $5.5 million, respectively, that are not expected to be fulfilled within the subsequent twelve months. The decrease in backlog is due to two large infrastructure orders in the prior year totaling $38 million that did not repeat, while order backlogs in North America and international irrigation are higher compared to the prior year.

Outlook

“Solid agricultural market fundamentals set the stage for improved irrigation equipment demand for the balance of the year. Significantly higher raw material and freight costs, along with supply chain constraints, continue to present challenges but our teams have been effective in working through these issues,” said Mr. Wood. “In our infrastructure business, while our sales pipeline remains robust, we expect continued coronavirus-related delays in road construction activity and projects.

Mr. Wood continued, “Our financial position remains strong, providing support for our innovation growth strategy across our businesses that address global megatrends and provide solutions that improve customer profitability and assist in their sustainability efforts.”

Second Quarter Conference Call

Lindsay’s fiscal 2021 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 and FieldNET® remote irrigation management and scheduling technology, as well as irrigation consulting and design 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,
2021

 

 

 

February 29,
2020

 

 

 

February 28,
2021

 

 

 

February 29,
2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

 

143,577

 

 

$

 

113,788

 

 

$

 

252,062

 

 

$

 

223,181

 

Cost of operating revenues

 

 

 

102,403

 

 

 

 

80,382

 

 

 

 

179,480

 

 

 

 

155,701

 

Gross profit

 

 

 

41,174

 

 

 

 

33,406

 

 

 

 

72,582

 

 

 

 

67,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling expense

 

 

 

7,778

 

 

 

 

8,192

 

 

 

 

15,110

 

 

 

 

14,684

 

General and administrative expense

 

 

 

14,275

 

 

 

 

13,167

 

 

 

 

27,727

 

 

 

 

24,971

 

Engineering and research expense

 

 

 

3,312

 

 

 

 

3,405

 

 

 

 

6,402

 

 

 

 

6,907

 

Total operating expenses

 

 

 

25,365

 

 

 

 

24,764

 

 

 

 

49,239

 

 

 

 

46,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

15,809

 

 

 

 

8,642

 

 

 

 

23,343

 

 

 

 

20,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

(1,205

)

 

 

 

(1,191

)

 

 

 

(2,406

)

 

 

 

(2,377

)

Interest income

 

 

 

268

 

 

 

 

389

 

 

 

 

571

 

 

 

 

1,004

 

Other expense, net

 

 

 

(311

)

 

 

 

(973

)

 

 

 

(65

)

 

 

 

(1,423

)

Total other (expense) income

 

 

 

(1,248

)

 

 

 

(1,775

)

 

 

 

(1,900

)

 

 

 

(2,796

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

 

14,561

 

 

 

 

6,867

 

 

 

 

21,443

 

 

 

 

18,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

2,685

 

 

 

 

1,351

 

 

 

 

2,472

 

 

 

 

4,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

 

11,876

 

 

$

 

5,516

 

 

$

 

18,971

 

 

$

 

13,861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

1.09

 

 

$

 

0.51

 

 

$

 

1.75

 

 

$

 

1.28

 

Diluted

 

$

 

1.08

 

 

$

 

0.51

 

 

$

 

1.74

 

 

$

 

1.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

10,884

 

 

 

 

10,825

 

 

 

 

10,865

 

 

 

 

10,810

 

Diluted

 

 

 

10,981

 

 

 

 

10,857

 

 

 

 

10,934

 

 

 

 

10,843

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per share

 

$

 

0.32

 

 

$

 

0.31

 

 

$

 

0.64

 

 

$

 

0.62

 

 

LINDSAY CORPORATION AND SUBSIDIARIES

 

SUMMARY OPERATING RESULTS

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

Six months ended

 

(in thousands)

 

 

February 28,
2021

 

 

 

February 29,
2020

 

 

 

February 28,
2021

 

 

 

February 29,
2020

 

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Irrigation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

 

80,178

 

 

$

 

67,088

 

 

 

 

132,968

 

 

$

 

120,675

 

International

 

 

 

38,394

 

 

 

 

26,406

 

 

 

 

72,961

 

 

 

 

56,145

 

Irrigation segment

 

 

 

118,572

 

 

 

 

93,494

 

 

$

 

205,929

 

 

$

 

176,820

 

Infrastructure segment

 

 

 

25,005

 

 

 

 

20,294

 

 

 

 

46,133

 

 

 

 

46,361

 

Total operating revenues

 

$

 

143,577

 

 

$

 

113,788

 

 

$

 

252,062

 

 

$

 

223,181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Irrigation segment

 

$

 

18,045

 

 

$

 

10,084

 

 

$

 

28,678

 

 

$

 

19,867

 

Infrastructure segment

 

 

 

6,341

 

 

 

 

5,888

 

 

 

 

10,597

 

 

 

 

14,630

 

Corporate

 

 

 

(8,577

)

 

 

 

(7,330

)

 

 

 

(15,932

)

 

 

 

(13,579

)

Total operating income

 

$

 

15,809

 

 

$

 

8,642

 

 

$

 

23,343

 

 

$

 

20,918

 

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 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 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.

Certain immaterial reclassifications have been made to the prior year operating results to conform with current year presentation, as revenues and operating income from certain product lines previously included within the Infrastructure reporting segment are now included within the Irrigation reporting segment.

LINDSAY CORPORATION AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

February 28,
2021

 

 

February 29,
2020

 

 

August 31,
2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

110,775

 

 

$

 

101,272

 

 

$

 

121,403

 

Marketable securities

 

 

 

19,555

 

 

 

 

18,740

 

 

 

 

19,511

 

Receivables, net

 

 

 

94,211

 

 

 

 

80,468

 

 

 

 

84,604

 

Inventories, net

 

 

 

121,566

 

 

 

 

105,454

 

 

 

 

104,792

 

Other current assets, net

 

 

 

29,509

 

 

 

 

19,083

 

 

 

 

17,625

 

Total current assets

 

 

 

375,616

 

 

 

 

325,017

 

 

 

 

347,935

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

 

89,221

 

 

 

 

68,762

 

 

 

 

79,581

 

Intangibles, net

 

 

 

22,383

 

 

 

 

23,162

 

 

 

 

23,477

 

Goodwill

 

 

 

68,087

 

 

 

 

64,338

 

 

 

 

68,004

 

Operating lease right-of-use assets

 

 

 

20,173

 

 

 

 

27,257

 

 

 

 

27,457

 

Deferred income tax assets

 

 

 

10,347

 

 

 

 

10,162

 

 

 

 

9,935

 

Other noncurrent assets, net

 

 

 

10,821

 

 

 

 

15,632

 

 

 

 

14,137

 

Total assets

 

$

 

596,648

 

 

$

 

534,330

 

 

$

 

570,526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

 

39,934

 

 

$

 

33,307

 

 

$

 

29,554

 

Current portion of long-term debt

 

 

 

215

 

 

 

 

211

 

 

 

 

195

 

Other current liabilities

 

 

 

74,687

 

 

 

 

54,303

 

 

 

 

72,646

 

Total current liabilities

 

 

 

114,836

 

 

 

 

87,821

 

 

 

 

102,395

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension benefits liabilities

 

 

 

6,182

 

 

 

 

5,868

 

 

 

 

6,374

 

Long-term debt

 

 

 

115,599

 

 

 

 

115,765

 

 

 

 

115,682

 

Operating lease liabilities

 

 

 

20,174

 

 

 

 

25,919

 

 

 

 

25,862

 

Deferred income tax liabilities

 

 

 

900

 

 

 

 

839

 

 

 

 

889

 

Other noncurrent liabilities

 

 

 

19,933

 

 

 

 

20,791

 

 

 

 

20,806

 

Total liabilities

 

 

 

277,624

 

 

 

 

257,003

 

 

 

 

272,008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

 

18,990

 

 

 

 

18,918

 

 

 

 

18,918

 

Capital in excess of stated value

 

 

 

84,206

 

 

 

 

74,645

 

 

 

 

77,686

 

Retained earnings

 

 

 

511,728

 

 

 

 

481,890

 

 

 

 

499,724

 

Less treasury stock - at cost

 

 

 

(277,238

)

 

 

 

(277,238

)

 

 

 

(277,238

)

Accumulated other comprehensive loss, net

 

 

 

(18,662

)

 

 

 

(20,888

)

 

 

 

(20,572

)

Total shareholders' equity

 

 

 

319,024

 

 

 

 

277,327

 

 

 

 

298,518

 

Total liabilities and shareholders' equity

 

$

 

596,648

 

 

$

 

534,330

 

 

$

 

570,526

 

LINDSAY CORPORATION AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended

 

(in thousands)

 

 

February 28, 2021

 

 

 

February 29, 2020

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

 

18,971

 

 

$

 

13,861

 

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

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

9,878

 

 

 

 

9,418

 

Gain on sale of assets held-for-sale

 

 

 

 

 

 

 

(1,191

)

Provision for uncollectible accounts receivable

 

 

 

246

 

 

 

 

213

 

Deferred income taxes

 

 

 

206

 

 

 

 

1,806

 

Share-based compensation expense

 

 

 

4,047

 

 

 

 

2,575

 

Unrealized foreign currency transaction (gain) loss

 

 

 

(754

)

 

 

 

1,515

 

Other, net

 

 

 

1,804

 

 

 

 

(2,153

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

Receivables

 

 

 

(10,769

)

 

 

 

(5,716

)

Inventories

 

 

 

(16,245

)

 

 

 

(14,153

)

Other current assets

 

 

 

(9,492

)

 

 

 

(4,539

)

Accounts payable

 

 

 

10,962

 

 

 

 

3,540

 

Other current liabilities

 

 

 

334

 

 

 

 

(2,183

)

Other noncurrent assets and liabilities

 

 

 

1,940

 

 

 

 

(5,178

)

Net cash provided by (used in) operating activities

 

 

 

11,128

 

 

 

 

(2,185

)

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

 

 

(16,556

)

 

 

 

(5,335

)

Proceeds from sale of property and equipment held-for-sale

 

 

 

 

 

 

 

3,955

 

Purchases of marketable securities available-for-sale

 

 

 

(8,313

)

 

 

 

(19,978

)

Proceeds from maturities of marketable securities available-for-sale

 

 

 

8,043

 

 

 

 

1,250

 

Other investing activities, net

 

 

 

(860

)

 

 

 

1,092

 

Net cash used in investing activities

 

 

 

(17,686

)

 

 

 

(19,016

)

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

 

3,814

 

 

 

 

1,545

 

Common stock withheld for payroll tax obligations

 

 

 

(1,269

)

 

 

 

(1,111

)

Principal payments on long-term debt

 

 

 

(88

)

 

 

 

(104

)

Dividends paid

 

 

 

(6,967

)

 

 

 

(6,711

)

Net cash used in financing activities

 

 

 

(4,510

)

 

 

 

(6,381

)

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

 

440

 

 

 

 

1,650

 

Net change in cash and cash equivalents

 

 

 

(10,628

)

 

 

 

(25,932

)

Cash and cash equivalents, beginning of period

 

 

 

121,403

 

 

 

 

127,204

 

Cash and cash equivalents, end of period

 

$

 

110,775

 

 

$

 

101,272

 

 

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

THREE PART ADVISORS:
Hala Elsherbini
214-442-0016

Source: Lindsay Corporation