LNN
$156.19
Lindsay
($1.18)
(.75%)
Earnings Details
1st Quarter November 2022
Thursday, January 5, 2023 6:45:00 AM
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Summary

Lindsay Beats

Lindsay (LNN) reported 1st Quarter November 2022 earnings of $1.65 per share on revenue of $176.2 million. The consensus earnings estimate was $1.25 per share on revenue of $178.7 million. The Earnings Whisper number was $1.28 per share. Revenue grew 6.0% 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
$1.65
Earnings Whisper
$1.28
Consensus Estimate
$1.25
Reported Revenue
$176.2 Mil
Revenue Estimate
$178.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Lindsay Corporation Reports Fiscal 2023 First Quarter Results

  • First quarter net earnings more than double to $18.2 million and EPS improves to $1.65
  • Irrigation revenues increase 4 percent on higher pricing and solid demand across core markets
  • Infrastructure revenues increase 19 percent on higher 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 first quarter which ended on November 30, 2022.

First Quarter Summary

Revenues for the first quarter of fiscal 2023 were $176.2 million, an increase of $10.0 million, or 6 percent, compared to revenues of $166.2 million in the prior year first quarter. Net earnings for the quarter were $18.2 million, or $1.65 per diluted share, compared with net earnings of $7.9 million, or $0.72 per diluted share, for the prior year first quarter.

“Positive market fundamentals continue to support solid demand for irrigation equipment across our core markets,” said Randy Wood, President and Chief Executive Officer. "Improved price realization and reduced inflationary headwinds compared to the same prior year period contributed to operating income growth and margin expansion in our irrigation business. In our infrastructure business, increased Road Zipper System sales resulted from the completion of a large project that began in our prior year fourth quarter."

First Quarter Segment Results

Irrigation segment revenues for the first quarter of fiscal 2023 were $152.1 million, an increase of $6.2 million, or 4 percent, compared to $145.9 million in the prior year first quarter. North America irrigation revenues of $83.9 million increased $5.0 million, or 6 percent, compared to the prior year first quarter. The increase in North America irrigation revenues resulted primarily from higher average selling prices as unit sales volume was comparable to the prior year first quarter. International irrigation revenues of $68.1 million increased $1.2 million, or 2 percent. Higher sales in Brazil and other markets more than offset the impact of lower sales in Ukraine and Russia and a large Egypt project in the prior year first quarter that did not repeat. The current year was also impacted by the unfavorable effects of foreign currency translation of approximately $1.6 million compared to the prior year first quarter.

Irrigation segment operating income for the first quarter of fiscal 2023 was $28.6 million, an increase of $11.4 million, or 66 percent, compared to the prior year first quarter. Operating margin was 18.8 percent of sales, compared to 11.8 percent of sales in the prior year first quarter. Increased operating income and operating margin resulted primarily from improved price realization, lower inflationary impact on input costs and a more favorable margin mix of international irrigation revenues compared to the prior year first quarter.

Infrastructure segment revenues for the first quarter of fiscal 2023 were $24.1 million, an increase of $3.8 million, or 19 percent, compared to $20.2 million in the prior year first quarter. The increase resulted from higher Road Zipper System sales, which were partially offset by lower Road Zipper System lease revenue and lower sales of road safety products.

Infrastructure segment operating income for the first quarter of fiscal 2023 was $3.4 million, an increase of $0.6 million or 22 percent compared to the prior year first quarter. Operating margin was 14.0 percent of sales, compared to 13.7 percent of sales in the prior year first quarter. Increased operating income and operating margin resulted primarily from higher revenues and lower inflationary impact on input costs compared to the prior year first quarter. This increase was partially offset by a less favorable margin mix of revenues compared to the prior year first quarter.

The backlog of unfilled orders at November 30, 2022 was $129.6 million compared with $154.8 million at November 30, 2021. The irrigation and infrastructure backlog are both lower compared to the prior year first quarter.

Outlook

“Current commodity price levels and net farm income projections support a positive outlook for North America irrigation equipment demand in the near term. We expect demand in international markets to be supported by expanded production driven by positive agricultural market fundamentals and continuing concerns over food security and global grain supplies,” said Mr. Wood. “In the infrastructure business, we expect growth to be supported by an anticipated increase in U.S. infrastructure spending and by the ongoing management of our project sales funnel.”

First Quarter Conference Call

Lindsay’s fiscal 2023 first 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

(in thousands, except per share amounts)

 

 

November 30,
2022

 

 

November 30,
2021

 

 

 

 

 

 

 

Operating revenues

 

$

176,159

 

 

$

166,152

 

Cost of operating revenues

 

 

123,139

 

 

 

128,714

 

Gross profit

 

 

53,020

 

 

 

37,438

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

Selling expense

 

 

9,677

 

 

 

7,990

 

General and administrative expense

 

 

14,437

 

 

 

12,880

 

Engineering and research expense

 

 

4,308

 

 

 

3,207

 

Total operating expenses

 

 

28,422

 

 

 

24,077

 

 

 

 

 

 

 

 

Operating income

 

 

24,598

 

 

 

13,361

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

Interest expense

 

 

(909

)

 

 

(1,163

)

Interest income

 

 

373

 

 

 

177

 

Other expense, net

 

 

(57

)

 

 

(2,900

)

Total other income (expense)

 

 

(593

)

 

 

(3,886

)

 

 

 

 

 

 

 

Earnings before income taxes

 

 

24,005

 

 

 

9,475

 

 

 

 

 

 

 

 

Income tax expense

 

 

5,788

 

 

 

1,574

 

 

 

 

 

 

 

 

Net earnings

 

$

18,217

 

 

$

7,901

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

Basic

 

$

1.66

 

 

$

0.72

 

Diluted

 

$

1.65

 

 

$

0.72

 

 

 

 

 

 

 

 

Shares used in computing earnings per share:

 

 

 

 

 

 

Basic

 

 

10,989

 

 

 

10,927

 

Diluted

 

 

11,073

 

 

 

11,026

 

 

 

 

 

 

 

 

Cash dividends declared per share

 

$

0.34

 

 

$

0.33

 

LINDSAY CORPORATION AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Unaudited)

 

 

 

 

 

 

 

 

 

Three months ended

(in thousands)

 

 

November 30,
2022

 

 

November 30,
2021

Operating revenues:

 

 

 

 

 

 

Irrigation:

 

 

 

 

 

 

North America

 

$

83,934

 

 

$

78,976

 

International

 

 

68,149

 

 

 

66,933

 

Irrigation segment

 

 

152,083

 

 

 

145,909

 

Infrastructure segment

 

 

24,076

 

 

 

20,243

 

Total operating revenues

 

$

176,159

 

 

$

166,152

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

Irrigation segment

 

$

28,641

 

 

$

17,212

 

Infrastructure segment

 

 

3,372

 

 

 

2,766

 

Corporate

 

 

(7,415

)

 

 

(6,617

)

Total operating income

 

$

24,598

 

 

$

13,361

 

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)

 

November 30,
2022

 

November 30,
2021

 

August 31,
2022

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

99,168

 

 

$

84,719

 

 

$

105,048

 

Marketable securities

 

 

11,424

 

 

 

30,195

 

 

 

11,460

 

Receivables, net

 

 

157,116

 

 

 

111,959

 

 

 

138,200

 

Inventories, net

 

 

188,404

 

 

 

173,115

 

 

 

193,776

 

Other current assets, net

 

 

25,295

 

 

 

26,345

 

 

 

28,617

 

Total current assets

 

 

481,407

 

 

 

426,333

 

 

 

477,101

 

 

 

 

 

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

93,518

 

 

 

91,639

 

 

 

94,472

 

Intangibles, net

 

 

17,760

 

 

 

19,827

 

 

 

18,208

 

Goodwill

 

 

67,295

 

 

 

67,735

 

 

 

67,130

 

Operating lease right-of-use assets

 

 

18,477

 

 

 

17,584

 

 

 

19,181

 

Deferred income tax assets

 

 

8,117

 

 

 

6,157

 

 

 

9,313

 

Other noncurrent assets, net

 

 

21,722

 

 

 

20,170

 

 

 

25,248

 

Total assets

 

$

708,296

 

 

$

649,445

 

 

$

710,653

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

58,535

 

 

$

58,908

 

 

$

60,036

 

Current portion of long-term debt

 

 

223

 

 

 

219

 

 

 

222

 

Other current liabilities

 

 

89,827

 

 

 

88,655

 

 

 

100,684

 

Total current liabilities

 

 

148,585

 

 

 

147,782

 

 

 

160,942

 

 

 

 

 

 

 

 

 

 

 

Pension benefits liabilities

 

 

4,812

 

 

 

5,660

 

 

 

4,892

 

Long-term debt

 

 

115,297

 

 

 

115,471

 

 

 

115,341

 

Operating lease liabilities

 

 

19,161

 

 

 

17,679

 

 

 

19,810

 

Deferred income tax liabilities

 

 

693

 

 

 

798

 

 

 

1,054

 

Other noncurrent liabilities

 

 

14,960

 

 

 

20,112

 

 

 

15,256

 

Total liabilities

 

 

303,508

 

 

 

307,502

 

 

 

317,295

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

Common stock

 

 

19,090

 

 

 

19,056

 

 

 

19,063

 

Capital in excess of stated value

 

 

93,079

 

 

 

89,006

 

 

 

94,006

 

Retained earnings

 

 

593,475

 

 

 

532,410

 

 

 

579,000

 

Less treasury stock - at cost

 

 

(277,238

)

 

 

(277,238

)

 

 

(277,238

)

Accumulated other comprehensive loss, net

 

 

(23,618

)

 

 

(21,291

)

 

 

(21,473

)

Total shareholders' equity

 

 

404,788

 

 

 

341,943

 

 

 

393,358

 

Total liabilities and shareholders' equity

 

$

708,296

 

 

$

649,445

 

 

$

710,653

 

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

Three months ended

(in thousands)

 

 

November 30,
2022

 

 

November 30,
2021

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net earnings

 

$

18,217

 

 

$

7,901

 

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

 

 

 

 

 

 

Depreciation and amortization

 

 

4,871

 

 

 

4,896

 

Provision for uncollectible accounts receivable

 

 

704

 

 

 

91

 

Deferred income taxes

 

 

1,129

 

 

 

1,841

 

Share-based compensation expense

 

 

1,473

 

 

 

1,222

 

Unrealized foreign currency transaction (gain) loss

 

 

(83

)

 

 

2,193

 

Other, net

 

 

289

 

 

 

292

 

Changes in assets and liabilities:

 

 

 

 

 

 

Receivables

 

 

(19,828

)

 

 

(17,816

)

Inventories

 

 

4,803

 

 

 

(31,674

)

Other current assets

 

 

3,526

 

 

 

5,965

 

Accounts payable

 

 

123

 

 

 

12,462

 

Other current liabilities

 

 

(11,898

)

 

 

(3,632

)

Other noncurrent assets and liabilities

 

 

1,356

 

 

 

(7,920

)

Net cash provided by (used in) operating activities

 

 

4,682

 

 

 

(24,179

)

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

 

(3,798

)

 

 

(3,061

)

Purchases of marketable securities

 

 

 

 

 

(14,354

)

Proceeds from maturities of marketable securities

 

 

 

 

 

3,599

 

Other investing activities, net

 

 

(384

)

 

 

(342

)

Net cash used in investing activities

 

 

(4,182

)

 

 

(14,158

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

 

 

 

2,442

 

Common stock withheld for payroll tax obligations

 

 

(2,471

)

 

 

(1,181

)

Proceeds from employee stock purchase plan

 

 

98

 

 

 

93

 

Principal payments on long-term debt

 

 

(55

)

 

 

(54

)

Dividends paid

 

 

(3,742

)

 

 

(3,621

)

Net cash used in financing activities

 

 

(6,170

)

 

 

(2,321

)

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(210

)

 

 

(1,730

)

Net change in cash and cash equivalents

 

 

(5,880

)

 

 

(42,388

)

Cash and cash equivalents, beginning of period

 

 

105,048

 

 

 

127,107

 

Cash and cash equivalents, end of period

 

$

99,168

 

 

$

84,719

 

 

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

THREE PART ADVISORS:
Jeff Elliott 972-423-7070
Gary Guyton 214-442-0016

Source: Lindsay Corporation