LNN
$90.83
Lindsay
$1.48
1.66%
Earnings Details
3rd Quarter May 2019
Tuesday, July 9, 2019 6:45:00 AM
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Summary

Lindsay Misses

Lindsay (LNN) reported 3rd Quarter May 2019 earnings of $0.50 per share on revenue of $121.1 million. The consensus earnings estimate was $0.81 per share on revenue of $136.9 million. The Earnings Whisper number was $0.81 per share. Revenue fell 28.6% compared to the same quarter a year ago.

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
$0.50
Earnings Whisper
$0.81
Consensus Estimate
$0.81
Reported Revenue
$121.1 Mil
Revenue Estimate
$136.9 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Lindsay Corporation Reports Fiscal 2019 Third Quarter Results

  • North America irrigation equipment demand remained constrained during the quarter
  • Infrastructure revenue and results were lower in comparison to strong prior year performance
  • Outlook for both irrigation and infrastructure showing signs of improvement

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 third quarter ended May 31, 2019.

Third Quarter Summary

Revenues for the third quarter of fiscal 2019 were $121.1 million, a decrease of $48.5 million, or 29 percent, compared to revenues of $169.6 million in the prior year third quarter. Approximately $27.2 million of the decrease in revenues was attributable to previously announced business divestitures in the irrigation segment as part of the Company’s Foundation for Growth initiative.

Net earnings for the quarter were $2.9 million, or $0.27 per diluted share, compared with net earnings of $10.4 million, or $0.96 per diluted share, for the same period in the prior year. In addition to the impact of lower revenues, net earnings for the quarter were reduced by after-tax costs of $2.6 million, or $0.23 per diluted share, related to the Company’s Foundation for Growth initiative. Excluding these additional costs, net earnings for the third quarter would have been $5.5 million, or $0.50 per diluted share.1 Net earnings for the same period in the prior year, adjusted for Foundation for Growth costs, would have been $17.9 million, or $1.66 per diluted share.1 Net earnings in the prior year included $1.5 million, or $0.14 per diluted share, related to the business divestitures.

“Low commodity prices and uncertainty regarding the outcome of trade negotiations continued to weigh on farmer sentiment and demand for irrigation equipment during the quarter,” said Tim Hassinger, President and Chief Executive Officer. “Along with that, strong Road Zipper System® sales in the prior year third quarter resulted in a challenging year over year comparison.”

Segment Results

Irrigation segment revenues for the third quarter of fiscal 2019 were $98.6 million, a decrease of $29.8 million, or 23 percent, compared to $128.4 million in the prior year third quarter. Excluding the impact of the divestitures, North America irrigation revenues of $63.0 million increased $2.8 million, or 5 percent, compared to the prior year. Higher revenue from engineering project services and the impact of higher average selling prices were partially offset by lower irrigation equipment unit volume and lower sales of replacement parts. International irrigation revenues of $35.6 million decreased $5.4 million, or 13 percent, compared to the prior year. Excluding the negative impact of differences in foreign currency translation compared to the prior year, international irrigation revenues decreased $2.7 million, or 7 percent.

Irrigation segment operating margin was 11.2 percent of sales (11.7 percent adjusted)1 in the third quarter, compared to 9.1 percent of sales (14.1 percent adjusted)1 in the prior year. The prior year benefited from the recovery of $2.5 million in previously reserved accounts receivable that did not repeat. In addition, lower sales of irrigation equipment and replacement parts in North America resulted in a lower margin mix in the current quarter.

Infrastructure segment revenues for the third quarter of fiscal 2019 were $22.4 million, a decrease of $18.7 million, or 45 percent, compared to $41.2 million in the prior year third quarter. The decrease resulted almost entirely from lower Road Zipper System® sales compared to the prior year’s period.

Infrastructure segment operating margin was 15.8 percent of sales (16.0 percent adjusted)1 in the third quarter, compared to 34.6 percent of sales (35.0 percent adjusted)1 in the third quarter of the prior year. The prior year period included high margin Road Zipper System® orders that did not repeat in the current quarter.

The backlog of unshipped orders at May 31, 2019 was $42.5 million compared with $55.8 million at May 31, 2018. Approximately $12.4 million of the reduction in backlog resulted from business divestitures. Excluding the impact of the divestitures, irrigation segment backlogs were higher and infrastructure backlogs were lower compared to the prior year. Subsequent to the end of the quarter, a $15.0 million Road Zipper System® order was received from a customer in Japan, with delivery expected to begin in the fourth quarter of fiscal 2019.

Foundation for Growth Initiative

In fiscal 2018, the Company announced a defined performance improvement initiative, referred to as Foundation for Growth, with the objectives of simplifying the business and achieving operating margin performance of 11 percent to 12 percent in fiscal 2020, assuming no improvement in market conditions from fiscal 2017.

Outlook

“Severe wet weather and widespread flooding in the U.S. have caused delayed corn plantings and curtailed planted acreage, reducing supply estimates and driving a recent increase in corn prices. Any further reduction in supply and increase in corn prices supports an improved outlook for irrigation equipment demand,” said Mr. Hassinger. “The short-term outlook for international markets remains mixed, with growth expected in Brazil and developing markets while certain other markets remain challenged.”

Mr. Hassinger added, “The receipt of a large international Road Zipper System order, along with early successes we are seeing in partnering with states on road construction projects, positions the infrastructure segment for growth. In addition, we expect that execution of our Foundation for Growth initiative will help us achieve our objective of delivering improved operating margins.”

Third Quarter Conference Call

Lindsay’s fiscal 2019 third 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.

1 Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted figures at end of document.

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

(in thousands, except per share amounts)

 

 

May 31,

2019

 

 

May 31,

2018

 

 

May 31,

2019

 

 

May 31,

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

 

121,054

 

 

$

 

169,571

 

 

$

 

342,187

 

 

$

 

424,436

 

Cost of operating revenues

 

 

 

91,055

 

 

 

 

118,093

 

 

 

 

259,066

 

 

 

 

305,245

 

Gross profit

 

 

 

29,999

 

 

 

 

51,478

 

 

 

 

83,121

 

 

 

 

119,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling expense

 

 

 

7,515

 

 

 

 

10,842

 

 

 

 

23,934

 

 

 

 

31,087

 

General and administrative expense

 

 

 

14,695

 

 

 

 

17,862

 

 

 

 

46,585

 

 

 

 

43,866

 

Engineering and research expense

 

 

 

3,314

 

 

 

 

3,960

 

 

 

 

10,547

 

 

 

 

11,932

 

Total operating expenses

 

 

 

25,524

 

 

 

 

32,664

 

 

 

 

81,066

 

 

 

 

86,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

 

4,475

 

 

 

 

18,814

 

 

 

 

2,055

 

 

 

 

32,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

(1,169

)

 

 

 

(1,226

)

 

 

 

(3,552

)

 

 

 

(3,502

)

Interest income

 

 

 

525

 

 

 

 

540

 

 

 

 

1,930

 

 

 

 

1,171

 

Other income (expense), net

 

 

 

(602

)

 

 

 

(683

)

 

 

 

(591

)

 

 

 

(2,062

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) before income taxes

 

 

 

3,229

 

 

 

 

17,445

 

 

 

 

(158

)

 

 

 

27,913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

 

332

 

 

 

 

7,066

 

 

 

 

(827

)

 

 

 

12,614

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

 

2,897

 

 

$

 

10,379

 

 

$

 

669

 

 

$

 

15,299

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

 

0.27

 

 

$

 

0.96

 

 

$

 

0.06

 

 

$

 

1.43

 

Diluted

 

$

 

0.27

 

 

$

 

0.96

 

 

$

 

0.06

 

 

$

 

1.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 

10,786

 

 

 

 

10,757

 

 

 

 

10,779

 

 

 

 

10,735

 

Diluted

 

 

 

10,814

 

 

 

 

10,785

 

 

 

 

10,807

 

 

 

 

10,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per share

 

$

 

0.31

 

 

$

 

0.30

 

 

$

 

0.93

 

 

$

 

0.90

 

LINDSAY CORPORATION AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Nine months ended

(in thousands)

 

 

May 31,

2019

 

 

May 31,

2018

 

 

May 31,

2019

 

 

May 31,

2018

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Irrigation segment

 

$

 

98,618

 

 

$

 

128,421

 

 

$

 

281,994

 

 

$

 

343,639

 

Infrastructure segment

 

 

 

22,436

 

 

 

 

41,150

 

 

 

 

60,193

 

 

 

 

80,797

 

Total operating revenues

 

$

 

121,054

 

 

$

 

169,571

 

 

$

 

342,187

 

 

$

 

424,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Irrigation segment

 

$

 

11,037

 

 

$

 

11,718

 

 

$

 

26,341

 

 

$

 

31,502

 

Infrastructure segment

 

 

 

3,537

 

 

 

 

14,248

 

 

 

 

7,259

 

 

 

 

20,058

 

Corporate

 

 

 

(10,099

)

 

 

 

(7,152

)

 

 

 

(31,545

)

 

 

 

(19,254

)

Total operating income

 

$

 

4,475

 

 

$

 

18,814

 

 

$

 

2,055

 

 

$

 

32,306

 

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)

 

May 31,

2019

 

May 31,

2018

 

August 31,

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

110,839

 

 

$

 

111,779

 

 

$

 

160,787

 

Receivables, net

 

 

 

94,584

 

 

 

 

92,135

 

 

 

 

69,107

 

Inventories, net

 

 

 

91,091

 

 

 

 

82,635

 

 

 

 

79,233

 

Assets held-for-sale

 

 

 

2,744

 

 

 

 

51,516

 

 

 

 

10,837

 

Other current assets, net

 

 

 

17,903

 

 

 

 

12,341

 

 

 

 

11,087

 

Total current assets

 

 

 

317,161

 

 

 

 

350,406

 

 

 

 

331,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

 

70,367

 

 

 

 

59,884

 

 

 

 

57,248

 

Intangibles, net

 

 

 

25,103

 

 

 

 

28,656

 

 

 

 

27,376

 

Goodwill

 

 

 

64,454

 

 

 

 

64,723

 

 

 

 

64,671

 

Deferred income tax assets

 

 

 

8,783

 

 

 

 

4,581

 

 

 

 

6,645

 

Other noncurrent assets, net

 

 

 

20,054

 

 

 

 

11,528

 

 

 

 

12,824

 

Total assets

 

$

 

505,922

 

 

$

 

519,778

 

 

$

 

499,815

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

 

37,509

 

 

$

 

30,281

 

 

$

 

30,530

 

Current portion of long-term debt

 

 

 

208

 

 

 

 

204

 

 

 

 

205

 

Liabilities held-for-sale

 

 

 

 

 

 

 

14,275

 

 

 

 

2,424

 

Other current liabilities

 

 

 

49,102

 

 

 

 

53,911

 

 

 

 

46,935

 

Total current liabilities

 

 

 

86,819

 

 

 

 

98,671

 

 

 

 

80,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension benefits liabilities

 

 

 

5,661

 

 

 

 

6,080

 

 

 

 

5,874

 

Long-term debt

 

 

 

115,885

 

 

 

 

116,172

 

 

 

 

116,129

 

Deferred income tax liabilities

 

 

 

918

 

 

 

 

1,117

 

 

 

 

1,083

 

Other noncurrent liabilities

 

 

 

26,245

 

 

 

 

20,229

 

 

 

 

19,769

 

Total liabilities

 

 

 

235,528

 

 

 

 

242,269

 

 

 

 

222,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

 

18,870

 

 

 

 

18,841

 

 

 

 

18,841

 

Capital in excess of stated value

 

 

 

70,566

 

 

 

 

67,587

 

 

 

 

68,465

 

Retained earnings

 

 

 

476,580

 

 

 

 

483,243

 

 

 

 

484,886

 

Less treasury stock - at cost

 

 

 

(277,238

)

 

 

 

(277,238

)

 

 

 

(277,238

)

Accumulated other comprehensive loss, net

 

 

 

(18,384

)

 

 

 

(14,924

)

 

 

 

(18,088

)

Total shareholders' equity

 

 

 

270,394

 

 

 

 

277,509

 

 

 

 

276,866

 

Total liabilities and shareholders' equity

 

$

 

505,922

 

 

$

 

519,778

 

 

$

 

499,815

 

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

(in thousands)

 

 

May 31,

2019

 

 

May 31,

2018

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net earnings

 

$

 

669

 

 

$

 

15,299

 

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

10,452

 

 

 

 

12,851

 

Loss on sale of business

 

 

 

301

 

 

 

 

6,023

 

Provision for uncollectible accounts receivable

 

 

 

(726

)

 

 

 

(2,407

)

Deferred income taxes

 

 

 

(2,556

)

 

 

 

(687

)

Share-based compensation expense

 

 

 

3,226

 

 

 

 

2,942

 

Other, net

 

 

 

(14

)

 

 

 

473

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Receivables

 

 

 

(26,371

)

 

 

 

(29,826

)

Inventories

 

 

 

(14,467

)

 

 

 

(8,247

)

Other current assets

 

 

 

546

 

 

 

 

(971

)

Accounts payable

 

 

 

9,072

 

 

 

 

1,901

 

Other current liabilities

 

 

 

(4,078

)

 

 

 

10,058

 

Other noncurrent assets and liabilities

 

 

 

4,318

 

 

 

 

766

 

Net cash (used in) provided by operating activities

 

 

 

(19,628

)

 

 

 

8,175

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

 

 

(20,210

)

 

 

 

(6,920

)

Proceeds from settlement of net investment hedges

 

 

 

2,262

 

 

 

 

101

 

Payments for settlement of net investment hedges

 

 

 

(327

)

 

 

 

(3,089

)

Other investing activities, net

 

 

 

60

 

 

 

 

241

 

Net cash used in investing activities

 

 

 

(18,215

)

 

 

 

(9,667

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from exercise of stock options

 

 

 

177

 

 

 

 

2,788

 

Common stock withheld for payroll tax obligations

 

 

 

(1,124

)

 

 

 

(833

)

Principal payments on long-term debt

 

 

 

(153

)

 

 

 

(150

)

Payment of debt issuance costs

 

 

 

(115

)

 

 

 

 

Dividends paid

 

 

 

(10,032

)

 

 

 

(9,671

)

Net cash used in financing activities

 

 

 

(11,247

)

 

 

 

(7,866

)

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

 

(858

)

 

 

 

(483

)

Net change in cash and cash equivalents

 

 

 

(49,948

)

 

 

 

(9,841

)

Cash and cash equivalents, beginning of period

 

 

 

160,787

 

 

 

 

121,620

 

Cash and cash equivalents, end of period

 

$

 

110,839

 

 

$

 

111,779

 

LINDSAY CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)

The non-GAAP tables below disclose (a) the impact on diluted earnings per share of consulting fees, severance costs and loss from business divestitures, associated with the Company's Foundation for Growth Initiative ("FFG costs"), (b) the impact on operating income of FFG costs, and (c) the impact on segment operating income of FFG costs. Management believes adjusted net earnings, adjusted diluted earnings per share and adjusted operating income are important indicators of the Company’s business performance because they exclude items that may not be indicative of, or may be unrelated to, the Company’s underlying operating results, and provide a useful baseline for analyzing trends in the business. Non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. These adjusted financial measures should not be considered in isolation or as a substitute for reported net earnings, diluted earnings per share and operating income. These non-GAAP financial measures reflect an additional way of viewing the Company’s operations that, when viewed with the GAAP results and the following reconciliations to the corresponding GAAP financial measures, management believes provides a more complete understanding of the Company’s business.

 

 

Three months ended

 

Nine months ended

(in thousands, except per share amounts)

 

May 31,

2019

 

Diluted earnings per share

 

May 31,

2019

 

Diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings - as reported

 

$

2,897

 

 

$

0.27

 

 

$

669

 

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFG costs - after tax

 

 

2,553

 

 

 

0.23

 

 

 

9,140

 

 

 

0.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings - adjusted

 

$

5,450

 

 

$

0.50

 

 

$

9,809

 

 

$

0.91

 

Average shares outstanding - diluted

 

 

 

 

 

10,814

 

 

 

 

 

 

10,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended May 31, 2019

Operating income reconciliation

 

Consolidated

 

Irrigation

 

Infrastructure

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income - as reported

 

$

4,475

 

 

$

11,037

 

 

$

3,537

 

 

$

(10,099

)

 

 

 

 

 

 

 

 

 

 

 

 

 

FFG costs - pre-tax

 

 

3,890

 

 

 

550

 

 

 

56

 

 

 

3,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

 

$

8,365

 

 

$

11,587

 

 

$

3,593

 

 

$

(6,815

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

121,054

 

 

$

98,618

 

 

$

22,436

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as a percent of operating revenues

 

 

3.7

%

 

 

11.2

%

 

 

15.8

%

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income as a percent of operating revenues

 

 

6.9

%

 

 

11.7

%

 

 

16.0

%

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended May 31, 2019

Operating income reconciliation

 

Consolidated

 

Irrigation

 

Infrastructure

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income - as reported

 

$

2,055

 

 

$

26,341

 

 

$

7,259

 

 

$

(31,545

)

 

 

 

 

 

 

 

 

 

 

 

 

 

FFG costs - pre-tax

 

 

13,166

 

 

 

676

 

 

 

188

 

 

 

12,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

 

$

15,221

 

 

$

27,017

 

 

$

7,447

 

 

$

(19,243

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

342,187

 

 

$

281,994

 

 

$

60,193

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as a percent of operating revenues

 

 

0.6

%

 

 

9.3

%

 

 

12.1

%

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income as a percent of operating revenues

 

 

4.4

%

 

 

9.6

%

 

 

12.4

%

 

N/A

 

LINDSAY CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)

The non-GAAP tables below disclose (a) the impact on diluted earnings per share of (1) tax expense attributed to enactment of the U.S. Tax Cuts and Jobs Act ("U.S. Tax Reform"), and (2) severance costs and professional consulting fees associated with the Company's Foundation for Growth initiative ("FFG costs"), (b) the impact on operating income of FFG costs, and (c) the impact on segment operating income of FFG costs. Management believes adjusted net earnings, adjusted diluted earnings per share and adjusted operating income are important indicators of the Company’s business performance because they exclude items that may not be indicative of, or may be unrelated to, the Company’s underlying operating results, and provide a useful baseline for analyzing trends in the business. Non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. These adjusted financial measures should not be considered in isolation or as a substitute for reported net earnings, diluted earnings per share and operating income. These non-GAAP financial measures reflect an additional way of viewing the Company’s operations that, when viewed with the GAAP results and the following reconciliations to the corresponding GAAP financial measures, management believes provides a more complete understanding of the Company’s business.

 

 

Three months ended

 

Nine months ended

(in thousands, except per share amounts)

 

May 31, 2018

 

Diluted earnings per share

 

May 31, 2018

 

Diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings - as reported

 

$

10,379

 

 

$

0.96

 

 

$

15,299

 

 

$

1.42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impact of U.S. Tax Reform

 

 

 

 

 

0.00

 

 

 

2,578

 

 

 

0.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFG costs - after tax

 

 

7,525

 

 

 

0.70

 

 

 

9,193

 

 

 

0.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings - adjusted

 

$

17,904

 

 

$

1.66

 

 

$

27,070

 

 

$

2.52

 

Average shares outstanding - diluted

 

 

 

 

 

10,785

 

 

 

 

 

 

10,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended May 31, 2018

Operating income reconciliation

 

Consolidated

 

Irrigation

 

Infrastructure

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income - as reported

 

$

18,814

 

 

$

11,718

 

 

$

14,248

 

 

$

(7,152

)

 

 

 

 

 

 

 

 

 

 

 

 

 

FFG costs - pre-tax

 

 

7,556

 

 

 

6,356

 

 

 

165

 

 

 

1,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

 

$

26,370

 

 

$

18,074

 

 

$

14,413

 

 

$

(6,117

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

169,571

 

 

$

128,421

 

 

$

41,150

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as a percent of operating revenues

 

 

11.1

%

 

 

9.1

%

 

 

34.6

%

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income as a percent of operating revenues

 

 

15.6

%

 

 

14.1

%

 

 

35.0

%

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended May 31, 2018

Operating income reconciliation

 

Consolidated

 

Irrigation

 

Infrastructure

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income - as reported

 

$

32,306

 

 

$

31,502

 

 

$

20,058

 

 

$

(19,254

)

 

 

 

 

 

 

 

 

 

 

 

 

 

FFG costs - pre-tax

 

 

9,887

 

 

 

6,929

 

 

 

165

 

 

 

2,793

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income

 

$

42,193

 

 

$

38,431

 

 

$

20,223

 

 

$

(16,461

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

424,436

 

 

$

343,639

 

 

$

80,797

 

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as a percent of operating revenues

 

 

7.6

%

 

 

9.2

%

 

 

24.8

%

 

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income as a percent of operating revenues

 

 

9.9

%

 

 

11.2

%

 

 

25.0

%

 

N/A

 

 

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

HALLIBURTON INVESTOR RELATIONS:
Hala Elsherbini or Geralyn DeBusk
972-458-8000

Source: Lindsay Corporation