Lindsay corporation reports fiscal 2022 fourth quarter and full year 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 fourth quarter and fiscal year, which ended on august 31, 2022. fourth quarter and full year summary revenues for the fourth quarter of fiscal 2022 were $190.2 million, an increase of $36.5 million, or 24 percent, compared to revenues of $153.6 million in the prior year fourth quarter. net earnings for the quarter were $17.9 million, or $1.62 per diluted share, compared with net earnings of $5.8 million, or $0.53 per diluted share, for the prior year fourth quarter. revenues for the year ended august 31, 2022 were $770.7 million, an increase of $203.1 million, or 36 percent, compared to revenues of $567.6 million in the prior year. net earnings for the year were $65.5 million, or $5.94 per diluted share, compared with net earnings of $42.6 million, or $3.88 per diluted share, for the prior year. “demand for irrigation equipment remained strong across all geographies in our fourth quarter, particularly in north america where damage to existing systems due to severe weather in the midwest resulted in a large increase in replacement sales. in the infrastructure business, fourth quarter revenue growth was driven by an increase in road zipper sales as we began delivery of a large project we had been expecting in the second half of our fiscal year,” said randy wood, president and chief executive officer. “for the full year, strong growth in our irrigation business led to record consolidated revenues of $770.7 million. we were also pleased that, through effective price management and improved operating performance, we were able to overcome the inflationary headwinds we faced earlier in the year to deliver results that met our annual operating margin objective of 12 percent.” fourth quarter segment results irrigation segment revenues for the fourth quarter of fiscal 2022 were $150.5 million, an increase of $25.2 million, or 20 percent, compared to $125.3 million in the prior year fourth quarter. north america irrigation revenues of $80.1 million increased $26.5 million, or 50 percent, compared to the prior year fourth quarter. the increase in north america irrigation revenues resulted from higher unit sales volumes and higher average selling prices. higher unit sales volumes resulted primarily from increased storm damage replacement demand compared to the prior year fourth quarter. international irrigation revenues of $70.4 million decreased $1.3 million, or 2 percent, including unfavorable effects of foreign currency translation of approximately $3.5 million compared to the prior year fourth quarter. strong sales growth in brazil, europe and other markets more than offset the impact of a large project in egypt in the prior year that did not repeat. irrigation segment operating income for the fourth quarter of fiscal 2022 was $24.2 million, an increase of $13.6 million, or 129 percent, compared to the prior year fourth quarter. operating margin was 16.1 percent of sales, compared to 8.4 percent of sales in the prior year fourth quarter. increased operating income and margin resulted from higher unit sales volumes, improved price realization and lower inflationary headwinds compared to the prior year fourth quarter. infrastructure segment revenues for the fourth quarter of fiscal 2022 were $39.7 million, an increase of $11.3 million, or 40 percent, compared to $28.4 million in the prior year fourth quarter. the increase resulted from higher road zipper system project sales, which were partially offset by lower road zipper system lease revenue. infrastructure segment operating income for the fourth quarter of fiscal 2022 was $11.5 million, an increase of $5.7 million or 97 percent compared to the prior year fourth quarter. operating margin was 28.8 percent of sales, compared to 20.5 percent of sales in the prior year fourth quarter, which is largely due to the increase in road zipper system sales. the backlog of unfilled orders at august 31, 2022 was $96.8 million compared with $149.1 million at august 31, 2021. the irrigation backlog is lower compared to the prior year while the infrastructure backlog is higher. outlook “current commodity prices and net farm income projections support a positive outlook for north america irrigation equipment demand for the fall selling season, however the ongoing impacts from inflation and supply chain challenges can also impact capital investment decisions for farmers. we expect growth in international markets through 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 to continue delivery of the large road zipper system project during the first quarter of fiscal 2023, and expectations for continued growth in this business are supported by an anticipated increase in u.s. infrastructure spending and by the ongoing management of our project sales funnel.” fourth quarter conference call lindsay’s fiscal 2022 fourth 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 august 31, years ended august 31, (in thousands, except per share amounts) 2022 2021 2022 2021 operating revenues $ 190,196 $ 153,648 $ 770,743 $ 567,646 cost of operating revenues 133,079 120,081 571,565 417,441 gross profit 57,117 33,567 199,178 150,205 operating expenses: selling expense 9,850 8,136 33,920 30,816 general and administrative expense 14,922 12,153 55,470 51,923 engineering and research expense 4,563 3,855 15,145 13,359 total operating expenses 29,335 24,144 104,535 96,098 operating income 27,782 9,423 94,643 54,107 other (expense) income: interest expense (924 ) (1,167 ) (4,269 ) (4,751 ) interest income 166 285 622 1,083 other expense, net (3,392 ) (752 ) (3,128 ) (53 ) total other (expense) income (4,150 ) (1,634 ) (6,775 ) (3,721 ) earnings before income taxes 23,632 7,789 87,868 50,386 income tax expense 5,703 1,985 22,399 7,814 net earnings $ 17,929 $ 5,804 $ 65,469 $ 42,572 earnings per share: basic $ 1.63 $ 0.53 $ 5.97 $ 3.91 diluted $ 1.62 $ 0.53 $ 5.94 $ 3.88 shares used in computing earnings per share: basic 10,980 10,907 10,965 10,886 diluted 11,063 11,039 11,031 10,985 cash dividends declared per share $ 0.34 $ 0.33 $ 1.33 $ 1.30 lindsay corporation and subsidiaries summary operating results (unaudited) three months ended twelve months ended (in thousands) august 31, 2022 august 31, 2021 august 31, 2022 august 31, 2021 operating revenues: irrigation: north america $ 80,082 $ 53,539 $ 355,683 $ 273,871 international 70,387 71,715 310,146 197,487 irrigation total 150,469 125,254 665,829 471,358 infrastructure 39,727 28,394 104,914 96,288 total operating revenues $ 190,196 $ 153,648 $ 770,743 $ 567,646 operating income: irrigation $ 24,250 $ 10,578 $ 105,763 $ 63,181 infrastructure 11,459 5,810 18,328 20,174 corporate (7,927 ) (6,965 ) (29,448 ) (29,248 ) total operating income $ 27,782 $ 9,423 $ 94,643 $ 54,107 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) august 31, 2022 august 31, 2021 assets current assets: cash and cash equivalents $ 105,048 $ 127,107 marketable securities 11,460 19,604 receivables, net of allowance of $4,118 and $3,422, respectively 138,200 93,609 inventories, net 193,776 145,244 other current assets 28,617 30,539 total current assets 477,101 416,103 property, plant, and equipment, net 94,472 91,997 intangible assets, net 18,208 20,367 goodwill 67,130 67,968 operating lease right-of-use assets 19,181 18,281 deferred income tax assets 9,313 8,113 other noncurrent assets 25,248 14,356 total assets $ 710,653 $ 637,185 liabilities and shareholders' equity current liabilities: accounts payable $ 60,036 $ 45,209 current portion of long-term debt 222 217 other current liabilities 100,684 92,814 total current liabilities 160,942 138,240 pension benefits liabilities 4,892 5,754 long-term debt 115,341 115,514 operating lease liabilities 19,810 18,301 deferred income tax liabilities 1,054 832 other noncurrent liabilities 15,256 20,099 total liabilities 317,295 298,740 shareholders' equity: preferred stock — — common stock 19,063 18,991 capital in excess of stated value 94,006 86,495 retained earnings 579,000 528,130 less treasury stock - at cost (277,238 ) (277,238 ) accumulated other comprehensive loss, net (21,473 ) (17,933 ) total shareholders' equity 393,358 338,445 total liabilities and shareholders' equity $ 710,653 $ 637,185 lindsay corporation and subsidiaries condensed consolidated statements of cash flows (unaudited) years ended august 31, (in thousands) 2022 2021 cash flows from operating activities: net earnings $ 65,469 $ 42,572 adjustments to reconcile net earnings to net cash provided by operating activities: depreciation and amortization 20,178 19,177 provision for uncollectible accounts receivable 903 771 deferred income taxes (2,063 ) 1,911 share-based compensation expense 5,458 6,186 foreign currency transaction loss (gain) 2,274 (1,934 ) other, net 695 (828 ) changes in assets and liabilities: receivables (47,514 ) (11,535 ) inventories (53,803 ) (38,158 ) other current assets 1,220 (8,132 ) accounts payable 13,832 17,993 other current liabilities 186 18,433 other noncurrent assets and liabilities (3,787 ) (2,488 ) net cash provided by operating activities 3,048 43,968 cash flows from investing activities: purchases of property, plant and equipment (15,595 ) (26,511 ) purchases of marketable securities available-for-sale (18,468 ) (19,356 ) proceeds from maturities of marketable securities available-for-sale 25,968 18,825 other investing activities, net (855 ) (577 ) net cash used in investing activities (8,950 ) (27,619 ) cash flows from financing activities: proceeds from exercise of stock options 2,894 3,965 common stock withheld for payroll tax obligations (1,181 ) (1,269 ) proceeds from employee stock purchase plan 412 — principal payments on long-term debt (218 ) (195 ) dividends paid (14,599 ) (14,166 ) net cash used in financing activities (12,692 ) (11,665 ) effect of exchange rate changes on cash and cash equivalents (3,465 ) 1,020 net change in cash and cash equivalents (22,059 ) 5,704 cash and cash equivalents, beginning of period 127,107 121,403 cash and cash equivalents, end of period $ 105,048 $ 127,107
LNN Ratings Summary
LNN Quant Ranking