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, 2023.
Key Highlights
- North America irrigation revenue growth driven by improved
demand for irrigation equipment
- Irrigation equipment pricing remains stable, supporting gross
margin improvement
- Improved infrastructure operating performance driven by growth
in Road Zipper SystemTM leasing
“Demand for irrigation equipment in North America improved in
the quarter, reflecting increased order activity as grower
profitability became more certain post-harvest compared to the
delayed investment decisions we had experienced in last year's
spring selling season,” said Randy Wood, President and Chief
Executive Officer. "Quoting activity in international irrigation
markets remains active and growing, however revenues for the
quarter were lower in South America following the record revenues
captured in Brazil in the prior year. Across our infrastructure
business, growth in our Road Zipper System leasing revenues and
sales of our road safety products largely offset muted Road Zipper
System project activity in the quarter. Importantly, our leasing
business continues to represent a greater proportion of our
infrastructure segment revenues with this sales mix accretive to
Lindsay's overall margin profile."
First Quarter Summary
Consolidated Financial Summary
First Quarter
(dollars in millions, except per share
amounts)
FY2024
FY2023
$ Change
% Change
Total revenues
$161.4
$176.2
($14.8)
(8%)
Operating income
$21.1
$24.6
($3.5)
(14%)
Operating margin
13.1%
14.0%
Net earnings
$15.0
$18.2
($3.2)
(18%)
Earnings per share
$1.36
$1.65
($0.29)
(18%)
Revenues for the quarter were $161.4 million, a decrease of
$14.8 million, or 8 percent, compared to revenues of $176.2 million
in the prior year first quarter. The decrease resulted primarily
from lower international irrigation sales compared to prior year
first quarter.
Operating income for the quarter was $21.1 million, a decrease
of $3.5 million, or 14 percent, compared to operating income of
$24.6 million in the prior year first quarter. Operating margin was
13.1 percent of sales compared to 14.0 percent of sales in the
prior year first quarter. The decrease in operating income and
margin resulted primarily from lower revenues as gross margin
improved compared to prior year first quarter.
Net earnings for the quarter were $15.0 million, or $1.36 per
diluted share, compared with net earnings of $18.2 million, or
$1.65 per diluted share, in the prior year first quarter. Lower net
earnings resulted largely from lower operating income that was
partially offset by higher interest income. In addition, net
earnings in the quarter were impacted by a higher effective income
tax rate compared to the prior year first quarter.
First Quarter Segment Results
Irrigation Segment
First Quarter
(dollars in millions)
FY2024
FY2023
$ Change
% Change
Revenues:
North America
$89.4
$83.9
$5.4
7%
International
$50.8
$68.1
($17.3)
(25%)
Total revenues
$140.2
$152.1
($11.9)
(8%)
Operating income
$25.3
$28.6
($3.3)
(12%)
Operating margin
18.1%
18.8%
Irrigation segment revenues for the quarter were $140.2 million,
a decrease of $11.9 million, or 8 percent, compared to $152.1
million in the prior year first quarter. North America irrigation
revenues of $89.4 million increased $5.4 million, or 7 percent,
compared to the prior year first quarter. The increase in North
America irrigation revenues resulted primarily from higher unit
sales volume that was partially offset by the impact of a less
favorable mix of shorter machines compared to the prior year first
quarter. Average selling prices remained stable and were comparable
to the prior year first quarter.
International irrigation revenues of $50.8 million decreased
$17.3 million, or 25 percent. The decrease resulted primarily from
lower sales in Brazil and Argentina compared to record sales in
those markets in the prior year first quarter. Changes in the
timing of funding under the financing program in Brazil contributed
to lower sales in the quarter relative to the prior year first
quarter. Revenue in the current year also benefited from the
favorable effects of foreign currency translation of approximately
$1.8 million compared to the prior year first quarter.
Irrigation segment operating income for the quarter was $25.3
million, a decrease of $3.3 million, or 12 percent, compared to the
prior year first quarter. Operating margin was 18.1 percent of
sales, compared to 18.8 percent of sales in the prior year first
quarter. Lower operating income and operating margin resulted
primarily from lower international irrigation revenues and the
resulting impact from deleverage of fixed operating expenses. Gross
margin remained consistent with the prior year first quarter.
Infrastructure Segment
First Quarter
(dollars in millions)
FY2024
FY2023
$ Change
% Change
Total revenues
$21.2
$24.1
($2.9)
(12%)
Operating income
$3.6
$3.4
$0.2
7%
Operating margin
17.1%
14.0%
Infrastructure segment revenues for the quarter were $21.2
million, a decrease of $2.9 million, or 12 percent, compared to
$24.1 million in the prior year first quarter. The decrease
resulted from lower Road Zipper System sales, which were largely
offset by higher Road Zipper System lease revenue and higher sales
of road safety products.
Infrastructure segment operating income for the quarter was $3.6
million, an increase of $0.2 million or 7 percent compared to the
prior year first quarter. Operating margin was 17.1 percent of
sales, compared to 14.0 percent of sales in the prior year first
quarter. Increased operating income and operating margin resulted
primarily from a more favorable margin mix of revenue with higher
lease revenue compared to the prior year first quarter.
The backlog of unfilled orders at November 30, 2023 was $86.8
million compared with $129.6 million at November 30, 2022. The
irrigation backlog was lower compared to the prior year while the
infrastructure backlog was comparable to the prior year.
Outlook
Mr. Wood concluded, “While customers will invest cautiously,
current farm income projections, moderating inflation and an
anticipation of flat to lower interest rates provide a stable
backdrop for irrigation equipment demand in North America. We
expect sales volume levels in developed international markets,
particularly Brazil, to improve over the balance of the year, and
we continue to see project opportunities in developing markets
supported by continuing global concerns over food security and
global grain supplies.”
“In our infrastructure business, we are beginning to see the
positive impact of increased U.S. infrastructure spending,
particularly in Road Zipper System leasing and sales of road safety
products. We also continue to actively manage projects through our
Road Zipper System project sales funnel, however the timing of
project implementation remains challenging to predict.”
First Quarter Conference Call
Lindsay’s fiscal 2024 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® and FieldWise® remote irrigation
management technology, FieldNET Advisor™ irrigation 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, 2023
November 30, 2022
Operating revenues
$
161,358
$
176,159
Cost of operating revenues
111,453
123,139
Gross profit
49,905
53,020
Operating expenses:
Selling expense
9,817
9,677
General and administrative expense
14,662
14,437
Engineering and research expense
4,352
4,308
Total operating expenses
28,831
28,422
Operating income
21,074
24,598
Other income (expense):
Interest expense
(877
)
(909
)
Interest income
1,068
373
Other income (expense), net
(270
)
(57
)
Total other income (expense)
(79
)
(593
)
Earnings before income taxes
20,995
24,005
Income tax expense
5,976
5,788
Net earnings
$
15,019
$
18,217
Earnings per share:
Basic
$
1.36
$
1.66
Diluted
$
1.36
$
1.65
Shares used in computing earnings per
share:
Basic
11,017
10,989
Diluted
11,059
11,073
Cash dividends declared per share
$
0.35
$
0.34
LINDSAY CORPORATION AND
SUBSIDIARIES
SUMMARY OPERATING
RESULTS
(Unaudited)
Three months ended
(in thousands)
November 30, 2023
November 30, 2022
Operating revenues:
Irrigation:
North America
$
89,377
$
83,934
International
50,791
68,149
Irrigation segment
140,168
152,083
Infrastructure segment
21,190
24,076
Total operating revenues
$
161,358
$
176,159
Operating income:
Irrigation segment
$
25,307
$
28,641
Infrastructure segment
3,619
3,372
Corporate
(7,852
)
(7,415
)
Total operating income
$
21,074
$
24,598
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, 2023
November 30, 2022
August 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
159,381
$
99,168
$
160,755
Marketable securities
16,278
11,424
5,556
Receivables, net
143,049
157,116
144,774
Inventories, net
164,144
188,404
155,932
Other current assets, net
18,450
25,295
20,467
Total current assets
501,302
481,407
487,484
Property, plant, and equipment, net
103,818
93,518
99,681
Intangibles, net
27,005
17,760
27,719
Goodwill
84,029
67,295
83,121
Operating lease right-of-use assets
17,544
18,477
17,036
Deferred income tax assets
12,712
8,117
10,885
Other noncurrent assets, net
17,508
21,722
19,734
Total assets
$
763,918
$
708,296
$
745,660
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
52,242
$
58,535
$
44,278
Current portion of long-term debt
227
223
226
Other current liabilities
89,502
89,827
91,604
Total current liabilities
141,971
148,585
136,108
Pension benefits liabilities
4,308
4,812
4,382
Long-term debt
115,120
115,297
115,164
Operating lease liabilities
17,746
19,161
17,689
Deferred income tax liabilities
695
693
689
Other noncurrent liabilities
17,218
14,960
15,977
Total liabilities
297,058
303,508
290,009
Shareholders' equity:
Preferred stock
—
—
—
Common stock
19,115
19,090
19,094
Capital in excess of stated value
98,628
93,079
98,508
Retained earnings
647,455
593,475
636,297
Less treasury stock - at cost
(277,238
)
(277,238
)
(277,238
)
Accumulated other comprehensive loss,
net
(21,100
)
(23,618
)
(21,010
)
Total shareholders' equity
466,860
404,788
455,651
Total liabilities and shareholders'
equity
$
763,918
$
708,296
$
745,660
LINDSAY CORPORATION AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
(in thousands)
November 30, 2023
November 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings
$
15,019
$
18,217
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
5,307
4,871
Provision for uncollectible accounts
receivable
71
704
Deferred income taxes
(1,666
)
1,129
Share-based compensation expense
1,603
1,473
Unrealized foreign currency transaction
loss (gain)
79
(83
)
Other, net
73
289
Changes in assets and liabilities:
Receivables
1,689
(19,828
)
Inventories
(7,970
)
4,803
Other current assets
2,762
3,526
Accounts payable
7,087
123
Other current liabilities
(4,263
)
(11,898
)
Other noncurrent assets and
liabilities
2,081
1,356
Net cash provided by operating
activities
21,872
4,682
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and
equipment
(6,941
)
(3,798
)
Purchases of marketable securities
(12,992
)
—
Proceeds from maturities of marketable
securities
2,325
—
Other investing activities, net
(593
)
(384
)
Net cash used in investing activities
(18,201
)
(4,182
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid
(3,861
)
(3,742
)
Common stock withheld for payroll tax
obligations
(1,575
)
(2,471
)
Other financing activities, net
56
43
Net cash used in financing activities
(5,380
)
(6,170
)
Effect of exchange rate changes on cash
and cash equivalents
335
(210
)
Net change in cash and cash
equivalents
(1,374
)
(5,880
)
Cash and cash equivalents, beginning of
period
160,755
105,048
Cash and cash equivalents, end of
period
$
159,381
$
99,168
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240104210742/en/
For further information, contact: LINDSAY
CORPORATION: Alicia Pfeifer Senior Director, Investor Relations
& Treasury 402-933-6429 Alicia.Pfeifer@lindsay.com Alpha
IR: Joe Caminiti or Stephen Poe 312-445-2870
LNN@alpha-ir.com
Lindsay (NYSE:LNN)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
Lindsay (NYSE:LNN)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024