Lindsay corporation reports fiscal 2021 second 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 second quarter of fiscal 2021, which ended on february 28, 2021. second quarter summary revenues for the second quarter of fiscal 2021 were $143.6 million, an increase of $29.8 million, or 26 percent, compared to revenues of $113.8 million in the prior year second quarter. net earnings for the quarter were $11.9 million, or $1.08 per diluted share, compared with net earnings of $5.5 million, or $0.51 per diluted share, for the prior year second quarter. “second quarter results were aided by improved agricultural market conditions as commodity prices reached their highest level in several years. we experienced strong demand for irrigation equipment throughout the quarter in north america as well as most international markets,” said randy wood, president and chief executive officer. “improved results in our infrastructure business resulted from higher road zipper system® sales and lease revenue,” mr. wood continued. second quarter segment results irrigation segment revenues for the second quarter of fiscal 2021 increased $25.1 million, or 27 percent, to $118.6 million compared to $93.5 million in the prior year second quarter. north america irrigation revenues increased $13.1 million, or 19 percent, to $80.2 million compared to the prior year second quarter. the increase resulted primarily from higher irrigation equipment unit sales volume and higher average selling prices. the increase was partially offset by revenue from engineering project services in the prior year that did not repeat. international irrigation revenues of $38.4 million increased $12.0 million, or 45 percent, compared to the prior year second quarter. the increase resulted from higher unit sales volumes in several international markets. irrigation segment operating income was $18.0 million, an increase of $7.9 million, or 79 percent, compared to the prior year second quarter. operating margin was 15.2 percent of sales, compared to 10.8 percent of sales in the prior year second 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 second quarter of fiscal 2021 increased $4.7 million, or 23 percent, to $25.0 million, compared to $20.3 million in the prior year second quarter. the increase resulted primarily from higher road zipper system® sales and lease revenue. infrastructure segment operating income was $6.3 million, an increase of $0.4 million, or 8 percent, compared to the prior year second quarter. operating margin was 25.4 percent of sales, compared to 29.0 percent of sales in the prior year second quarter. prior year operating income included a gain of $1.2 million on the sale of a building that had been held for sale. the backlog of unfilled orders at february 28, 2021 was $101.4 million compared with $104.4 million at february 29, 2020. included in these backlogs are amounts of $2.7 million and $5.5 million, respectively, that are not expected to be fulfilled within the subsequent twelve months. the decrease in backlog is due to two large infrastructure orders in the prior year totaling $38 million that did not repeat, while order backlogs in north america and international irrigation are higher compared to the prior year. outlook “solid agricultural market fundamentals set the stage for improved irrigation equipment demand for the balance of the year. significantly higher raw material and freight costs, along with supply chain constraints, continue to present challenges but our teams have been effective in working through these issues,” said mr. wood. “in our infrastructure business, while our sales pipeline remains robust, we expect continued coronavirus-related delays in road construction activity and projects. mr. wood continued, “our financial position remains strong, providing support for our innovation growth strategy across our businesses that address global megatrends and provide solutions that improve customer profitability and assist in their sustainability efforts.” second quarter conference call lindsay’s fiscal 2021 second 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 six months ended (in thousands, except per share amounts) february 28, 2021 february 29, 2020 february 28, 2021 february 29, 2020 operating revenues $ 143,577 $ 113,788 $ 252,062 $ 223,181 cost of operating revenues 102,403 80,382 179,480 155,701 gross profit 41,174 33,406 72,582 67,480 operating expenses: selling expense 7,778 8,192 15,110 14,684 general and administrative expense 14,275 13,167 27,727 24,971 engineering and research expense 3,312 3,405 6,402 6,907 total operating expenses 25,365 24,764 49,239 46,562 operating income 15,809 8,642 23,343 20,918 other (expense) income: interest expense (1,205 ) (1,191 ) (2,406 ) (2,377 ) interest income 268 389 571 1,004 other expense, net (311 ) (973 ) (65 ) (1,423 ) total other (expense) income (1,248 ) (1,775 ) (1,900 ) (2,796 ) earnings before income taxes 14,561 6,867 21,443 18,122 income tax expense 2,685 1,351 2,472 4,261 net earnings $ 11,876 $ 5,516 $ 18,971 $ 13,861 earnings per share: basic $ 1.09 $ 0.51 $ 1.75 $ 1.28 diluted $ 1.08 $ 0.51 $ 1.74 $ 1.28 shares used in computing earnings per share: basic 10,884 10,825 10,865 10,810 diluted 10,981 10,857 10,934 10,843 cash dividends declared per share $ 0.32 $ 0.31 $ 0.64 $ 0.62 lindsay corporation and subsidiaries summary operating results (unaudited) three months ended six months ended (in thousands) february 28, 2021 february 29, 2020 february 28, 2021 february 29, 2020 operating revenues: irrigation: north america $ 80,178 $ 67,088 132,968 $ 120,675 international 38,394 26,406 72,961 56,145 irrigation segment 118,572 93,494 $ 205,929 $ 176,820 infrastructure segment 25,005 20,294 46,133 46,361 total operating revenues $ 143,577 $ 113,788 $ 252,062 $ 223,181 operating income (loss): irrigation segment $ 18,045 $ 10,084 $ 28,678 $ 19,867 infrastructure segment 6,341 5,888 10,597 14,630 corporate (8,577 ) (7,330 ) (15,932 ) (13,579 ) total operating income $ 15,809 $ 8,642 $ 23,343 $ 20,918 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) february 28, 2021 february 29, 2020 august 31, 2020 assets current assets: cash and cash equivalents $ 110,775 $ 101,272 $ 121,403 marketable securities 19,555 18,740 19,511 receivables, net 94,211 80,468 84,604 inventories, net 121,566 105,454 104,792 other current assets, net 29,509 19,083 17,625 total current assets 375,616 325,017 347,935 property, plant, and equipment, net 89,221 68,762 79,581 intangibles, net 22,383 23,162 23,477 goodwill 68,087 64,338 68,004 operating lease right-of-use assets 20,173 27,257 27,457 deferred income tax assets 10,347 10,162 9,935 other noncurrent assets, net 10,821 15,632 14,137 total assets $ 596,648 $ 534,330 $ 570,526 liabilities and shareholders' equity current liabilities: accounts payable $ 39,934 $ 33,307 $ 29,554 current portion of long-term debt 215 211 195 other current liabilities 74,687 54,303 72,646 total current liabilities 114,836 87,821 102,395 pension benefits liabilities 6,182 5,868 6,374 long-term debt 115,599 115,765 115,682 operating lease liabilities 20,174 25,919 25,862 deferred income tax liabilities 900 839 889 other noncurrent liabilities 19,933 20,791 20,806 total liabilities 277,624 257,003 272,008 shareholders' equity: preferred stock — — — common stock 18,990 18,918 18,918 capital in excess of stated value 84,206 74,645 77,686 retained earnings 511,728 481,890 499,724 less treasury stock - at cost (277,238 ) (277,238 ) (277,238 ) accumulated other comprehensive loss, net (18,662 ) (20,888 ) (20,572 ) total shareholders' equity 319,024 277,327 298,518 total liabilities and shareholders' equity $ 596,648 $ 534,330 $ 570,526 lindsay corporation and subsidiaries condensed consolidated statements of cash flows (unaudited) six months ended (in thousands) february 28, 2021 february 29, 2020 cash flows from operating activities: net earnings $ 18,971 $ 13,861 adjustments to reconcile net earnings to net cash provided by (used in) operating activities: depreciation and amortization 9,878 9,418 gain on sale of assets held-for-sale — (1,191 ) provision for uncollectible accounts receivable 246 213 deferred income taxes 206 1,806 share-based compensation expense 4,047 2,575 unrealized foreign currency transaction (gain) loss (754 ) 1,515 other, net 1,804 (2,153 ) changes in assets and liabilities: receivables (10,769 ) (5,716 ) inventories (16,245 ) (14,153 ) other current assets (9,492 ) (4,539 ) accounts payable 10,962 3,540 other current liabilities 334 (2,183 ) other noncurrent assets and liabilities 1,940 (5,178 ) net cash provided by (used in) operating activities 11,128 (2,185 ) cash flows from investing activities: purchases of property, plant, and equipment (16,556 ) (5,335 ) proceeds from sale of property and equipment held-for-sale — 3,955 purchases of marketable securities available-for-sale (8,313 ) (19,978 ) proceeds from maturities of marketable securities available-for-sale 8,043 1,250 other investing activities, net (860 ) 1,092 net cash used in investing activities (17,686 ) (19,016 ) cash flows from financing activities: proceeds from exercise of stock options 3,814 1,545 common stock withheld for payroll tax obligations (1,269 ) (1,111 ) principal payments on long-term debt (88 ) (104 ) dividends paid (6,967 ) (6,711 ) net cash used in financing activities (4,510 ) (6,381 ) effect of exchange rate changes on cash and cash equivalents 440 1,650 net change in cash and cash equivalents (10,628 ) (25,932 ) cash and cash equivalents, beginning of period 121,403 127,204 cash and cash equivalents, end of period $ 110,775 $ 101,272