Lindsay corporation reports fiscal 2021 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 2021, which ended on november 30, 2020. first quarter summary revenues for the first quarter of fiscal 2021 were $108.5 million, a decrease of $0.9 million, or 1 percent, compared to revenues of $109.4 million in the prior year first quarter. net earnings for the quarter were $7.1 million, or $0.65 per diluted share, compared with net earnings of $8.3 million, or $0.77 per diluted share, for the prior year first quarter. net earnings for the quarter include an income tax benefit of approximately $1.7 million, or $0.16 per diluted share, related to the release of a valuation allowance in a foreign jurisdiction. “irrigation market conditions improved during the quarter with rising agricultural commodity prices and higher projected net farm income. this resulted in stronger than expected order flow for irrigation equipment, particularly in the latter part of the quarter.” said randy wood, president and chief executive officer. “our infrastructure business performed well, although results were lower than a very strong first quarter in the prior year.” first quarter segment results irrigation segment revenues for the first quarter of fiscal 2021 increased $4.1 million, or 5 percent to $87.4 million, compared to $83.3 million in the prior year first quarter. north america irrigation revenues of $52.8 million decreased $0.8 million, or 2 percent, compared to the prior year first quarter. the decrease resulted primarily from lower engineering services revenue related to a project in the prior year that did not repeat that was partially offset by higher irrigation equipment unit volume. international irrigation revenues of $34.6 million increased $4.8 million, or 16 percent, compared to the prior year first quarter. the increase resulted from higher unit sales volumes in several regions which were partially offset by the unfavorable effects of foreign currency translation of approximately $2.4 million compared to the prior year first quarter. irrigation segment operating margin was 12.2 percent of sales, compared to 11.7 percent of sales in the prior year first quarter. the increase resulted primarily from the impact of higher irrigation system unit volume and was partially offset by the impact of higher raw material and freight costs. infrastructure segment revenues for the first quarter of fiscal 2021 were $21.1 million, a decrease of $5.0 million, or 19 percent, compared to $26.1 million in the prior year first quarter. the decrease resulted primarily from a large order delivered in the prior year that did not repeat and from lower road construction activity in the current year. infrastructure segment operating margin was 20.1 percent of sales, compared to 33.5 percent of sales in the prior year first quarter. the decrease resulted primarily from lower revenue in higher margin product lines and an increase in raw material and other costs compared to the prior year. the backlog of unfilled orders at november 30, 2020 was $89.2 million compared with $69.2 million at november 30, 2019. included in these backlogs are amounts of $5.4 million and $5.2 million, respectively, that are not expected to be fulfilled within the subsequent twelve months. the increase in backlog is primarily attributable to higher order activity in north america irrigation. outlook “our backlog of irrigation equipment orders in north america supports solid revenue growth for our second quarter. we also expect improved activity levels to continue in international irrigation markets. at the same time, we are seeing rapid and significant increases in steel and freight costs that will pressure margins in the short term until pricing actions are fully implemented.” said mr. wood. “in our infrastructure business, we continue to be encouraged by the quality of our road zipper® sales funnel. however, the timing of those projects can be difficult to predict, particularly in the current environment with coronavirus-related effects on road construction activity. “our financial position remains strong, providing support for our innovation growth strategy across our businesses that address global megatrends and provide solutions that conserve natural resources.” first quarter conference call lindsay’s fiscal 2021 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 and fieldnet® remote irrigation management and scheduling technology, as well as irrigation consulting and design 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, 2020 november 30, 2019 operating revenues $ 108,485 $ 109,393 cost of operating revenues 77,077 75,319 gross profit 31,408 34,074 operating expenses: selling expense 7,331 6,492 general and administrative expense 13,452 11,804 engineering and research expense 3,090 3,502 total operating expenses 23,873 21,798 operating income 7,535 12,276 other (expense) income: interest expense (1,201 ) (1,186 ) interest income 303 615 other income (expense), net 246 (450 ) total other (expense) income (652 ) (1,021 ) earnings before income taxes 6,883 11,255 income tax (benefit) expense (212 ) 2,910 net earnings $ 7,095 $ 8,345 earnings per share: basic $ 0.65 $ 0.77 diluted $ 0.65 $ 0.77 shares used in computing earnings per share: basic 10,845 10,795 diluted 10,888 10,828 cash dividends declared per share $ 0.32 $ 0.31 lindsay corporation and subsidiaries summary operating results (unaudited) three months ended (in thousands) november 30, 2020 november 30, 2019 operating revenues: irrigation: north america $ 52,790 $ 53,588 international 34,566 29,739 irrigation segment 87,356 83,327 infrastructure segment 21,129 26,066 total operating revenues $ 108,485 $ 109,393 operating income (loss): irrigation segment $ 10,633 $ 9,784 infrastructure segment 4,256 8,741 corporate (7,354 ) (6,249 ) total operating income $ 7,535 $ 12,276 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 and large diameter steel tubing 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. certain immaterial reclassifications have been made to the prior year operating results to conform with current year presentation, as revenues and operating income from certain product lines previously included within the infrastructure reporting segment are now included within the irrigation reporting segment. lindsay corporation and subsidiaries condensed consolidated balance sheets (unaudited) (in thousands) november 30, 2020 november 30, 2019 august 31, 2020 assets current assets: cash and cash equivalents $ 126,802 $ 120,910 $ 121,403 marketable securities 19,624 — 19,511 receivables, net 74,909 79,317 84,604 inventories, net 114,278 97,284 104,792 assets held-for-sale — 2,744 — other current assets, net 20,837 16,376 17,625 total current assets 356,450 316,631 347,935 property, plant, and equipment, net 81,295 70,305 79,581 intangibles, net 22,817 23,739 23,477 goodwill 68,027 64,358 68,004 operating lease right-of-use assets 26,008 25,764 27,457 deferred income tax assets 9,924 9,902 9,935 other noncurrent assets, net 10,681 16,112 14,137 total assets $ 575,202 $ 526,811 $ 570,526 liabilities and shareholders' equity current liabilities: accounts payable $ 36,263 $ 30,097 $ 29,554 current portion of long-term debt 214 210 195 other current liabilities 65,910 54,494 72,646 total current liabilities 102,387 84,801 102,395 pension benefits liabilities 6,293 5,948 6,374 long-term debt 115,641 115,805 115,682 operating lease liabilities 24,863 25,323 25,862 deferred income tax liabilities 902 845 889 other noncurrent liabilities 21,215 21,089 20,806 total liabilities 271,301 253,811 272,008 shareholders' equity: preferred stock — — — common stock 18,948 18,897 18,918 capital in excess of stated value 78,026 71,706 77,686 retained earnings 503,342 479,732 499,724 less treasury stock - at cost (277,238 ) (277,238 ) (277,238 ) accumulated other comprehensive loss, net (19,177 ) (20,097 ) (20,572 ) total shareholders' equity 303,901 273,000 298,518 total liabilities and shareholders' equity $ 575,202 $ 526,811 $ 570,526 lindsay corporation and subsidiaries condensed consolidated statements of cash flows (unaudited) three months ended (in thousands) november 30, 2020 november 30, 2019 cash flows from operating activities: net earnings $ 7,095 $ 8,345 adjustments to reconcile net earnings to net cash provided by operating activities: depreciation and amortization 5,140 4,748 provision for uncollectible accounts receivable 158 248 deferred income taxes 140 1,987 share-based compensation expense 1,583 1,160 foreign currency transaction (gain) loss (203 ) 668 other, net 36 (294 ) changes in assets and liabilities: receivables 8,896 (4,122 ) inventories (8,294 ) (4,931 ) other current assets (3,068 ) (2,466 ) accounts payable 7,286 725 other current liabilities (7,146 ) (1,901 ) other noncurrent assets and liabilities 3,750 (2,626 ) net cash provided by operating activities 15,373 1,541 cash flows from investing activities: purchases of property, plant, and equipment (5,614 ) (4,322 ) purchases of marketable securities available-for-sale (3,844 ) — proceeds from maturities of marketable securities available-for-sale 3,616 — proceeds from settlement of net investment hedges — 1,092 other investing activities, net — 24 net cash used in investing activities (5,842 ) (3,206 ) cash flows from financing activities: proceeds from exercise of stock options 56 — common stock withheld for payroll tax obligations (1,269 ) (1,111 ) principal payments on long-term debt (35 ) (52 ) dividends paid (3,477 ) (3,353 ) net cash used in financing activities (4,725 ) (4,516 ) effect of exchange rate changes on cash and cash equivalents 593 (113 ) net change in cash and cash equivalents 5,399 (6,294 ) cash and cash equivalents, beginning of period 121,403 127,204 cash and cash equivalents, end of period $ 126,802 $ 120,910
