Lindsay Corporation Reports Fiscal 2012 Second Quarter Results
OMAHA, Neb.--(BUSINESS WIRE)-- Lindsay Corporation (LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its second quarter ended February 29, 2012.
Second Quarter Results
Second quarter fiscal 2012 total revenues of $132.1 million increased 10 percent from $120.2 million in the same prior year period. Net earnings were $12.8 million or $1.00 per diluted share compared with $11.3 million or $0.89 per diluted share in the prior fiscal years second quarter.
Total irrigation equipment revenues increased 28 percent to $117.0 million from $91.7 million in the prior fiscal years second quarter. Domestic irrigation revenues of $82.9 million increased 25 percent, while international irrigation revenues of $34.1 million increased 36 percent as compared to the same prior year period. Infrastructure revenues decreased 47 percent to $15.1 million due mostly to lower sales and leases of Quick-Change Moveable Barrier (QMB) systems.
Gross margin was 27.6 percent compared to 28.3 percent in the prior years second quarter. Total gross margins were lower primarily due to lower revenues of higher-margin QMB product as compared to the same period last year. Irrigation gross margins improved compared to the same quarter last year due to cost leverage and productivity gains on higher sales volumes. Infrastructure gross margins declined compared to the year ago period, but improved excluding QMB.
Operating expenses were $17.5 million in the quarter compared to $16.9 million in the second quarter of the prior fiscal year. The primary elements of the expense increase related to an acquired company purchased in fiscal 2011 and personnel related costs. Operating expenses were 13.3 percent of sales in the second quarter of 2012 compared with 14.1 percent of sales in the prior year period. Operating margins of 14.3 percent increased slightly from 14.2 percent in the prior year period.
Cash and cash equivalents of $105.0 million were $26.5 million higher compared with the end of the second quarter last year, while debt decreased $4.3 million over the same period.
Lindsays backlog of unshipped orders at February 29, 2012 was $87.3 million compared with $64.3 million at February 28, 2011 and $52.8 million at November 30, 2011.
Six Month Results
Total revenues for the six months ended February 29, 2012 were $251.3 million, a 20 percent increase from $209.3 million for the prior years six-month period. Total irrigation equipment revenues of $217.7 million increased 44 percent from a year ago, while infrastructure revenues decreased 42 percent to $33.6 million. The Companys operating income for the six-month period was $24.0 million compared to $23.7 million during the same prior year period. Net earnings were $15.7 million or $1.23 per diluted share, as compared to $15.6 million, or $1.23 per diluted share for the prior year period.
First quarter and year to date fiscal 2012 operating costs included $7.2 million of accrued expenses, or $0.37 per diluted share on an after tax basis, relating to an estimated increase in the Companys liability for environmental remediation at its Lindsay, Nebraska facility. The comparable fiscal 2011 periods included environmental remediation expense of $0.7 million, or $0.04 per diluted share on an after tax basis.
Rick Parod, president and chief executive officer, commented, Global irrigation demand drove improved results in our domestic and international businesses. Our operating margins improved year over year despite the significantly lower QMB sales. Irrigation order volumes remained strong throughout the quarter leading to increased backlog as we enter the seasonally stronger third quarter.
Parod added, Farm incomes and commodity prices remain relatively high by historical standards and have continued to drive positive farmer sentiment. Expanded food production and efficient water use remain positive drivers for irrigation equipment demand, globally. Infrastructure demand, including QMB projects, has proven to be challenging, due to funding issues and project delays. During the past few months, we have experienced numerous QMB project delays that have left us uncertain as to the timing and extent of projects in the second half of fiscal 2012.
Second-Quarter Conference Call
Lindsays fiscal 2012 second quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (888) 748-0479 domestically, or (706) 758-9823 internationally, and referring to conference ID # 60279722. 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. 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 through its wholly owned subsidiaries, Barrier Systems Inc. and Snoline S.P.A. At February 29, 2012, Lindsay had approximately 12.7 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.
For more information regarding Lindsay Corporation, see Lindsay's Web site at www.lindsay.com. For more information on the Company's infrastructure products, visit www.barriersystemsinc.com and www.snoline.com.
Concerning Forward-looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties and which reflect managements 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 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 OPERATIONS|
|Three months ended||Six months ended|
|February 29,||February 28,||February 29,||February 28,|
|($ in thousands, except per share amounts)||2012||2011||2012||2011|
|Cost of operating revenues||95,640||86,159||184,597||151,102|
|General and administrative expense||8,434||7,265||17,374||14,583|
|Engineering and research expense||2,244||2,772||4,300||5,336|
|Environmental remediation expense||-||-||7,225||713|
|Total operating expenses||17,546||16,948||42,711||34,561|
|Other income (expense):|
|Other income (expense), net||515||116||(80||)||227|
|Earnings before income taxes||19,427||17,001||23,868||23,578|
|Income tax provision||6,653||5,676||8,173||7,967|
|Basic net earnings per share||$||1.01||$||0.90||$||1.24||$||1.24|
|Diluted net earnings per share||$||1.00||$||0.89||$||1.23||$||1.23|
|Weighted average shares outstanding||12,703||12,548||12,692||12,525|
|Diluted effect of stock equivalents||118||137||100||139|
|Weighted average shares outstanding assuming dilution||12,821||12,685||12,792||12,664|
|Cash dividends per share||$||0.090||$||0.085||$||0.180||$||0.170|
|Lindsay Corporation and Subsidiaries|
|CONDENSED CONSOLIDATED BALANCE SHEETS|
|February 29,||February 28,||August 31,|
|($ and shares in thousands, except par values)||2012||2011||2011|
|Cash and cash equivalents||$||104,953||$||78,448||$||108,167|
|Receivables, net of allowance||77,536||75,096||79,006|
|Deferred income taxes||8,336||5,457||8,598|
|Other current assets||14,193||10,035||12,398|
|Total current assets||273,596||223,912||257,693|
|Property, plant and equipment, net||57,236||58,141||58,465|
|Other intangible assets, net||26,839||27,807||28,639|
|Other noncurrent assets||5,486||4,869||5,404|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Current portion of long-term debt||4,286||4,286||4,286|
|Other current liabilities||33,428||27,049||42,880|
|Total current liabilities||77,131||69,596||79,319|
|Pension benefits liabilities||6,115||6,289||6,231|
|Deferred income taxes||11,678||10,746||12,550|
|Other noncurrent liabilities||8,362||1,798||3,094|
|Capital in excess of stated value||40,736||32,954||39,058|
|Less treasury stock||(90,961||)||(90,961||)||(90,961||)|
|Accumulated other comprehensive income, net||3,846||4,399||6,462|
|Total shareholders' equity||288,171||248,400||275,665|
|Total liabilities and shareholders' equity||$||393,600||$||343,257||$||381,144|
|Lindsay Corporation and Subsidiaries|
|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS|
|($ in thousands)||Six Months Ended|
|CASH FLOWS FROM OPERATING ACTIVITIES:|
|Adjustments to reconcile net earnings to net cash provided by|
|Depreciation and amortization||6,235||5,880|
|Provision for uncollectible accounts receivable||129||188|
|Deferred income taxes||(1,299||)||(575||)|
|Share-based compensation expense||1,829||1,586|
|Changes in assets and liabilities:|
|Other current assets||(1,798||)||(762||)|
|Other current liabilities||(8,670||)||(7,877||)|
|Current taxes payable||(1,260||)||(1,525||)|
|Other noncurrent assets and liabilities||5,692||(1,343||)|
|Net cash provided by operating activities||4,865||3,915|
|CASH FLOWS FROM INVESTING ACTIVITIES:|
|Purchases of property, plant and equipment||(4,723||)||(4,402||)|
|Proceeds from sale of property, plant and equipment||107||53|
|Acquisition of business, net of cash acquired||-||(1,279||)|
|Proceeds (payment) for settlement of net investment hedge||1,548||(734||)|
|Net cash used in investing activities||(3,068||)||(6,362||)|
|CASH FLOWS FROM FINANCING ACTIVITIES:|
|Issuance of common stock under share-based compensation plans||276||809|
|Common stock withheld from share-based compensation for payroll tax withholdings||(577||)||(843||)|
|Principal payments on long-term debt||(2,142||)||(2,143||)|
|Net borrowing on revolving line of credit||-||389|
|Excess tax benefits from share-based compensation||273||877|
|Net cash used in financing activities||(4,456||)||(3,044||)|
|Effect of exchange rate changes on cash||(555||)||521|
|Net decrease in cash and cash equivalents||(3,214||)||(4,970||)|
|Cash and cash equivalents, beginning of period||108,167||83,418|
|Cash and cash equivalents, end of period||$||104,953||$||78,448|
Jim Raabe, 402-827-6579
Vice President & Chief Financial Officer
Halliburton Investor Relations:
Hala Elsherbini or Geralyn DeBusk, 972-458-8000
Source: Lindsay CorporationCopyright Business Wire 2012