Lindsay corporation reports fiscal 2023 first quarter results
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