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Lindsay Corporation Reports Fiscal 2015 First Quarter Results |
Lindsay Corporation (NYSE: LNN), a leading provider of irrigation
systems and infrastructure products, today announced results for its
first quarter ended November 30, 2014.
First Quarter Results
First quarter fiscal 2015 revenues were $134.8 million versus $147.7
million of revenues in the same prior year period. Net earnings were
$7.6 million or $0.62 per diluted share compared with $10.2 million or
$0.79 per diluted share in the prior year.
Total irrigation equipment revenues decreased 11 percent to $114.7
million from $129.2 million in the prior fiscal year's first quarter.
U.S. irrigation revenues of $62.7 million decreased 21 percent due to a
27 percent decline in the number of irrigation systems sold as a result
of the reduction in commodity prices, offset by sales increases in
pumping stations and filtration solutions. International irrigation
revenues of $52.0 million increased 4 percent most notably in the Middle
East, South Africa and Australia. Infrastructure revenues increased 9
percent to $20.1 million with the primary increase in the road safety
product line.
Gross margin was 27.4 percent of sales compared to 27.2 percent of sales
in the prior year's first quarter. Gross margin in irrigation decreased
by approximately 1 percentage point and infrastructure gross margin
increased by approximately 6 percentage points. Excluding the impact of
a higher than normal warranty charge in the prior year, irrigation gross
margin decreased by approximately 2.5 percentage points primarily as a
result of pricing pressure and increases in input costs. The increase in
infrastructure gross margin was primarily due to sales mix and increased
leverage on higher sales.
Operating expenses increased $0.8 million to $25.0 million compared to
the first quarter of the prior fiscal year. Expenses that support
regular operating activities decreased by approximately $1.3 million due
to reductions in personnel expenses including incentive compensation,
outside services and fees associated with the Iraq contract, offset by a
$1.5 million increase in estimated environmental expenses and $0.6
million of expenses associated with the planned acquisition of Elecsys
Corporation. The environmental and acquisition expenses reduced earnings
by $0.11 per diluted share on an after tax basis. Operating expenses
were 18.5 percent of sales in the first quarter of fiscal 2015 compared
with 16.4 percent of sales in the prior year period. Operating margins
were 8.8 percent in the first quarter, versus 10.8 percent in the prior
year period.
Cash and cash equivalents of $139.3 million were $12.5 million lower
compared to the prior year first quarter. The Company repurchased
381,619 shares for $30.0 million during the first quarter and a total of
879,518 shares for $71.1 million since the inception of the program in
January 2014. In addition, the Company expects to raise $100 million
through a placement of long term debt over the next several months.
Backlog of unshipped orders at November 30, 2014 was $68.3 million
compared with $86.6 million at November 30, 2013 and $79.6 million at
August 31, 2014. The current and prior year infrastructure backlog
includes a $12.7 million Road Zipper System order for the Golden Gate
Bridge which is expected to be recognized in revenue in fiscal 2015.
Outlook
Rick Parod, president and chief executive officer, commented, "The U.S.
irrigation market contraction continued in the quarter as lower
commodity prices, uncertainty surrounding renewal of tax incentives, and
lower farm incomes affected farmers' sentiment regarding equipment
purchases. We expect the current market challenges in agriculture to
continue into calendar 2015. On the positive side, our infrastructure
business has continued to improve at both the top and bottom line as we
develop our sales pipeline and improve our margin structure."
Parod continued, "Longer term, drivers for the Company's markets of
population growth, expanded food production and efficient water use, and
infrastructure upgrades and expansion support our expectation for
growth. In addition we expect the pending acquisition of Elecsys
Corporation will help us build on our leadership position in
implementing technology to improve water use efficiency."
First-Quarter Conference Call
Lindsay's fiscal 2015 first quarter investor conference call is
scheduled for 11:00 a.m. Eastern Time today. Interested investors may
participate in the call by dialing (888) 321-8161 in the U.S., or (706)
758-0065 internationally, and referring to conference ID # 59043217.
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 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 under the Lindsay
Transportation Solutions trade name. At November 30, 2014 Lindsay had
approximately 12.1 million shares outstanding, which are traded on the
New York Stock Exchange under the symbol LNN.
For more information regarding Lindsay Corporation, see the Company's
Web site at 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 OPERATIONS | (Unaudited) | |
| | |
| | | | | Three months ended | | | November 30, | | November 30, | ($ and shares in thousands, except per share amounts) | | 2014 | | 2013 | | | | | | |
|
Operating revenues
| |
$
|
134,845
| |
$
|
147,671
|
Cost of operating revenues
| |
|
97,931
| |
|
107,520
|
Gross profit
| |
|
36,914
| |
|
40,151
| | | | | | |
|
Operating expenses:
| | | | | | |
Selling expense
| | |
9,417
| | |
9,756
|
General and administrative expense
| | |
12,871
| | |
11,743
|
Engineering and research expense
| |
|
2,724
| |
|
2,660
|
Total operating expenses
| |
|
25,012
| |
|
24,159
| | | | | | |
|
Operating income
| | |
11,902
| | |
15,992
| | | | | | |
|
Other income (expense):
| | | | | | |
Interest expense
| | |
(71)
| | |
(39)
|
Interest income
| | |
172
| | |
135
|
Other expense, net
| |
|
(342)
| |
|
(271)
| | | | | | |
|
Earnings before income taxes
| | |
11,661
| | |
15,817
| | | | | | |
|
Income tax expense
| |
|
4,093
| |
|
5,583
| | | | | | |
|
Net earnings
| |
$
|
7,568
| |
$
|
10,234
| | | | | | |
|
Earnings per share:
| | | | | | |
Basic
| |
$
|
0.62
| |
$
|
0.79
|
Diluted
| |
$
|
0.62
| |
$
|
0.79
| | | | | | |
|
Shares used in computing earnings per share:
| | | | | | |
Basic
| | |
12,224
| | |
12,889
|
Diluted
| | |
12,274
| | |
12,951
| | | | | | |
|
Cash dividends declared per share
| |
$
|
0.270
| |
$
|
0.130
| | | | | | |
|
| Lindsay Corporation and Subsidiaries | CONDENSED CONSOLIDATED BALANCE SHEETS | (Unaudited) | |
| |
| |
| | | | | November 30, | | November 30, | | August 31, | ($ in thousands) | | 2014 | | 2013 | | 2014 | | | | | | | | | |
|
ASSETS
| | | | | | | | | |
Current Assets:
| | | | | | | | | |
Cash and cash equivalents
| |
$
|
139,287
| |
$
|
151,803
| |
$
|
171,842
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Receivables, net
| | |
89,165
| | |
122,093
| | |
94,135
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Inventories, net
| | |
77,010
| | |
75,614
| | |
71,696
|
Deferred income taxes
| | |
17,107
| | |
13,469
| | |
17,714
|
Other current assets
| |
|
18,853
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|
15,989
| |
|
18,671
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Total current assets
| |
|
341,422
| |
|
378,968
| |
|
374,058
| | | | | | | | | |
|
Property, plant and equipment, net
| | |
70,901
| | |
65,252
| | |
72,457
|
Intangibles, net
| | |
30,821
| | |
35,029
| | |
31,980
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Goodwill
| | |
36,634
| | |
37,193
| | |
37,021
|
Other noncurrent assets, net
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|
10,299
| |
|
5,261
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|
11,035
|
Total assets
| |
$
|
490,077
| |
$
|
521,703
| |
$
|
526,551
| | | | | | | | | |
|
LIABILITIES AND SHAREHOLDERS' EQUITY
| | | | | | | | | |
Current Liabilities:
| | | | | | | | | |
Accounts payable
| |
$
|
48,648
| |
$
|
45,902
| |
$
|
42,424
|
Other current liabilities
| |
|
60,972
| |
|
57,132
| |
|
73,943
|
Total current liabilities
| |
|
109,620
| |
|
103,034
| |
|
116,367
| | | | | | | | | |
|
Pension benefits liabilities
| | |
6,530
| | |
6,263
| | |
6,600
|
Deferred income taxes
| | |
11,903
| | |
14,715
| | |
12,992
|
Other noncurrent liabilities
| |
|
9,190
| |
|
8,022
| |
|
7,945
|
Total liabilities
| |
|
137,243
| |
|
132,034
| |
|
143,904
| | | | | | | | | |
|
Shareholders' Equity:
| | | | | | | | | |
Preferred stock
| | |
-
| | |
-
| | |
-
|
Common stock
| | |
18,674
| | |
18,620
| | |
18,636
|
Capital in excess of stated value
| | |
52,650
| | |
49,288
| | |
52,866
|
Retained earnings
| | |
449,658
| | |
414,133
| | |
445,366
|
Less treasury stock
| | |
(162,006)
| | |
(90,961)
| | |
(132,020)
|
Accumulated other comprehensive loss, net
| |
|
(6,142)
| |
|
(1,411)
| |
|
(2,201)
|
Total shareholders' equity
| |
|
352,834
| |
|
389,669
| |
|
382,647
|
Total liabilities and shareholders' equity
| |
$
|
490,077
| |
$
|
521,703
| |
$
|
526,551
| | | | | | | | | |
|
| Lindsay Corporation and Subsidiaries | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | (Unaudited) | |
| | | |
| Three months ended | | | November 30, | | November 30, | ($ in thousands) | | 2014 | | 2013 | | | | | | |
|
CASH FLOWS FROM OPERATING ACTIVITIES:
| | | | | | |
Net earnings
| |
$
|
7,568
| |
$
|
10,234
|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
| | | | | | |
Depreciation and amortization
| | |
3,748
| | |
3,707
|
Provision for uncollectible accounts receivable
| | |
169
| | |
442
|
Deferred income taxes
| | |
(774)
| | |
(1,365)
|
Share-based compensation expense
| | |
1,099
| | |
1,180
|
Other, net
| | |
1,368
| | |
(244)
|
Changes in assets and liabilities:
| | | | | | |
Receivables
| | |
1,792
| | |
(1,608)
|
Inventories
| | |
(5,347)
| | |
(6,608)
|
Other current assets
| | |
(1,513)
| | |
(431)
|
Accounts payable
| | |
7,300
| | |
3,356
|
Other current liabilities
| | |
(8,131)
| | |
(5,986)
|
Current income taxes payable
| | |
(3,441)
| | |
3,140
|
Other noncurrent assets and liabilities
| |
|
1,857
| |
|
111
|
Net cash provided by operating activities
| |
|
5,695
| |
|
5,928
| | | | | | |
|
CASH FLOWS FROM INVESTING ACTIVITIES:
| | | | | | |
Purchases of property, plant and equipment
| | |
(3,649)
| | |
(2,387)
|
Proceeds from sale of property, plant and equipment
| | |
-
| | |
34
|
Proceeds from settlement of net investment hedges
| | |
1,889
| | |
101
|
Payments for settlement of net investment hedges
| |
|
(329)
| |
|
(1,035)
|
Net cash used in investing activities
| |
|
(2,089)
| |
|
(3,287)
| | | | | | |
|
CASH FLOWS FROM FINANCING ACTIVITIES:
| | | | | | |
Common stock withheld for payroll tax withholdings
| | |
(1,699)
| | |
(2,027)
|
Excess tax benefits from share-based compensation
| | |
501
| | |
465
|
Repurchase of common shares
| | |
(29,986)
| | |
-
|
Dividends paid
| |
|
(3,276)
| |
|
(1,681)
|
Net cash used in financing activities
| |
|
(34,460)
| |
|
(3,243)
| | | | | | |
|
Effect of exchange rate changes on cash and cash equivalents
| |
|
(1,701)
| |
|
478
|
Net change in cash and cash equivalents
| | |
(32,555)
| | |
(124)
|
Cash and cash equivalents, beginning of period
| |
|
171,842
| |
|
151,927
|
Cash and cash equivalents, end of period
| |
$
|
139,287
| |
$
|
151,803
| | | | | | |
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LINDSAY CORPORATION: Jim Raabe, 402-827-6579 Vice
President & Chief Financial Officer or HALLIBURTON
INVESTOR RELATIONS: Hala Elsherbini, 972-458-8000 or Geralyn
DeBusk, 972-458-8000
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| 4/26/2024 6:17:56 AM776372 |
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