Lindsay corporation reports fiscal 2022 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 of fiscal 2022, which ended on november 30, 2021. first quarter summary revenues for the first quarter of fiscal 2022 were $166.2 million, an increase of $57.7 million, or 53 percent, compared to revenues of $108.5 million in the prior year first quarter. net earnings for the quarter were $7.9 million, or $0.72 per diluted share, compared with net earnings of $7.1 million, or $0.65 per diluted share, for the prior year first quarter. net earnings for the quarter were reduced by an after-tax lifo impact of approximately $4.5 million, or $0.41 per diluted share. “positive market fundamentals continue to support solid demand for irrigation equipment across all geographies,” said randy wood, president and chief executive officer. “raw material cost inflation and supply chain issues continue to create challenges and limit margin expansion. our teams are managing well in this dynamic environment in order to support our customers.” first quarter segment results irrigation segment revenues for the first quarter of fiscal 2022 were $145.9 million, an increase of $58.6 million, or 67 percent, compared to $87.4 million in the prior year first quarter. north america irrigation revenues of $79.0 million increased $26.2 million, or 50 percent, compared to the prior year first quarter. the increase in north america irrigation revenues resulted from a combination of higher irrigation equipment unit sales volume and higher average selling prices. international irrigation revenues of $66.9 million increased $32.4 million, or 94 percent, compared to the prior year first quarter. the increase in international irrigation revenues resulted primarily from higher unit sales volumes, along with higher selling prices and a favorable foreign currency translation impact of $1.1 million. the largest sales volume increases were in the brazil, middle east, and europe markets. irrigation segment operating income for the first quarter of fiscal 2022 was $17.2 million, an increase of $6.6 million, or 62 percent, compared to the prior year first quarter. operating margin was 11.8 percent of sales, compared to 12.2 percent of sales in the prior year first quarter. the impact of higher irrigation system unit volume was partially offset by the impact of higher costs of raw materials and other inputs. first quarter operating results were also reduced by approximately $5.0 million resulting from the impact of the lifo method of accounting for inventory, under which higher raw material costs are recognized in cost of goods sold rather than in ending inventory values. infrastructure segment revenues for the first quarter of fiscal 2022 were $20.2 million, a decrease of $0.9 million, or 4 percent, compared to $21.1 million in the prior year first quarter. the decrease resulted from lower road zipper system® sales, which were partially offset by higher road zipper system lease revenue and increased sales of road safety products compared to the prior year. infrastructure segment operating income for the first quarter of fiscal 2022 was $2.8 million, a decrease of $1.5 million, or 35 percent, compared to the prior year first quarter. operating margin was 13.7 percent of sales, compared to 20.1 percent of sales in the prior year first quarter. current year results reflect lower revenues and a less favorable margin mix of revenues compared to the prior year first quarter and were also reduced by approximately $1.0 million resulting from the impact of the lifo method of accounting for inventory. the backlog of unfilled orders at november 30, 2021 was $154.8 million compared with $89.2 million at november 30, 2020. a higher backlog of orders in irrigation was partially offset by a lower backlog in infrastructure. outlook “market conditions support continued solid demand for irrigation equipment, and we also expect raw material cost inflation and supply chain challenges to persist in the near term. we are focused on protecting and improving margins in this environment,” said mr. wood. “regarding our infrastructure business, we continue to expect an increase in project activity in the second half of the fiscal year.” mr. wood concluded, “we are sharply focused on our innovation growth strategy that addresses the needs of a growing population and provides solutions that improve efficiency and promote sustainability.” first quarter conference call lindsay’s fiscal 2022 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, 2021 november 30, 2020 operating revenues $ 166,152 $ 108,485 cost of operating revenues 128,714 77,077 gross profit 37,438 31,408 operating expenses: selling expense 7,990 7,331 general and administrative expense 12,880 13,452 engineering and research expense 3,207 3,090 total operating expenses 24,077 23,873 operating income 13,361 7,535 other (expense) income: interest expense (1,163 ) (1,201 ) interest income 177 303 other expense, net (2,900 ) 246 total other (expense) income (3,886 ) (652 ) earnings before income taxes 9,475 6,883 income tax expense (benefit) 1,574 (212 ) net earnings $ 7,901 $ 7,095 earnings per share: basic $ 0.72 $ 0.65 diluted $ 0.72 $ 0.65 shares used in computing earnings per share: basic 10,927 10,845 diluted 11,026 10,888 cash dividends declared per share $ 0.33 $ 0.32 lindsay corporation and subsidiaries summary operating results (unaudited) three months ended (in thousands) november 30, 2021 november 30, 2020 operating revenues: irrigation: north america $ 78,976 $ 52,790 international 66,933 34,566 irrigation segment 145,909 87,356 infrastructure segment 20,243 21,129 total operating revenues $ 166,152 $ 108,485 operating income (loss): irrigation segment $ 17,212 $ 10,633 infrastructure segment 2,766 4,256 corporate (6,617 ) (7,354 ) total operating income $ 13,361 $ 7,535 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, 2021 november 30, 2020 august 31, 2021 assets current assets: cash and cash equivalents $ 84,719 $ 126,802 $ 127,107 marketable securities 30,195 19,624 19,604 receivables, net 111,959 74,909 93,609 inventories, net 173,115 114,278 145,244 other current assets, net 26,345 20,837 30,539 total current assets 426,333 356,450 416,103 property, plant, and equipment, net 91,639 81,295 91,997 intangibles, net 19,827 22,817 20,367 goodwill 67,735 68,027 67,968 operating lease right-of-use assets 17,584 26,008 18,281 deferred income tax assets 6,157 9,924 8,113 other noncurrent assets, net 20,170 10,681 14,356 total assets $ 649,445 $ 575,202 $ 637,185 liabilities and shareholders' equity current liabilities: accounts payable $ 58,908 $ 36,263 $ 45,209 current portion of long-term debt 219 214 217 other current liabilities 88,655 65,910 92,814 total current liabilities 147,782 102,387 138,240 pension benefits liabilities 5,660 6,293 5,754 long-term debt 115,471 115,641 115,514 operating lease liabilities 17,679 24,863 18,301 deferred income tax liabilities 798 902 832 other noncurrent liabilities 20,112 21,215 20,099 total liabilities 307,502 271,301 298,740 shareholders' equity: preferred stock — — — common stock 19,056 18,948 18,991 capital in excess of stated value 89,006 78,026 86,495 retained earnings 532,410 503,342 528,130 less treasury stock - at cost (277,238 ) (277,238 ) (277,238 ) accumulated other comprehensive loss, net (21,291 ) (19,177 ) (17,933 ) total shareholders' equity 341,943 303,901 338,445 total liabilities and shareholders' equity $ 649,445 $ 575,202 $ 637,185 lindsay corporation and subsidiaries condensed consolidated statements of cash flows (unaudited) three months ended (in thousands) november 30, 2021 november 30, 2020 cash flows from operating activities: net earnings $ 7,901 $ 7,095 adjustments to reconcile net earnings to net cash (used in) provided by operating activities: depreciation and amortization 4,896 5,140 provision for uncollectible accounts receivable 91 158 deferred income taxes 1,841 140 share-based compensation expense 1,222 1,583 unrealized foreign currency transaction loss (gain) 2,193 (203 ) other, net 292 36 changes in assets and liabilities: receivables (17,816 ) 8,896 inventories (31,674 ) (8,294 ) other current assets 5,965 (3,068 ) accounts payable 12,462 7,286 other current liabilities (3,632 ) (7,146 ) other noncurrent assets and liabilities (7,920 ) 3,750 net cash (used in) provided by operating activities (24,179 ) 15,373 cash flows from investing activities: purchases of property, plant, and equipment (3,061 ) (5,614 ) purchases of marketable securities available-for-sale (14,354 ) (3,844 ) proceeds from maturities of marketable securities available-for-sale 3,599 3,616 other investing activities, net (342 ) — net cash used in investing activities (14,158 ) (5,842 ) cash flows from financing activities: proceeds from exercise of stock options 2,442 56 common stock withheld for payroll tax obligations (1,181 ) (1,269 ) proceeds from employee stock purchase plan 93 — principal payments on long-term debt (54 ) (35 ) dividends paid (3,621 ) (3,477 ) net cash used in financing activities (2,321 ) (4,725 ) effect of exchange rate changes on cash and cash equivalents (1,730 ) 593 net change in cash and cash equivalents (42,388 ) 5,399 cash and cash equivalents, beginning of period 127,107 121,403 cash and cash equivalents, end of period $ 84,719 $ 126,802
