Exhibit 99.1
2222 NO. 111TH ST. OMAHA, NE 68164 TEL: 402-829-6800 FAX: 402-829-6836 | ||
|
For further information, contact:
LINDSAY CORPORATION: | HALLIBURTON INVESTOR RELATIONS: | |
Jim Raabe | Hala Elsherbini or Geralyn DeBusk | |
Vice President & Chief Financial Officer | 972-458-8000 | |
402-827-6579 |
Lindsay Corporation Reports Fiscal 2012 Third Quarter Results
OMAHA, Neb., June 27, 2012—Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its third quarter ended May 31, 2012.
Third Quarter Results
Third quarter fiscal 2012 total revenues of $172.1 million increased 12 percent from $153.4 million in the same prior year period. Net earnings were $18.8 million or $1.47 per diluted share compared with $15.3 million or $1.20 per diluted share in the prior fiscal year’s third quarter.
Total irrigation equipment revenues increased 18 percent to $149.6 million from $126.9 million in the prior fiscal year’s third quarter. Domestic irrigation revenues of $105.6 million increased 38 percent, while international irrigation revenues of $44.0 million decreased 12 percent as compared to the same prior year period. Infrastructure revenues decreased 15 percent to $22.5 million.
Gross margin was 28.5 percent compared to 27.0 percent in the prior year’s third quarter reflecting improvements in gross margins in both the irrigation and infrastructure segments. Irrigation gross margins increased as a result of favorable sales mix. Infrastructure margins increased due to improved product pricing in road safety and diversified products along with efforts to lower manufacturing costs.
Operating expenses were $20.2 million in the quarter compared to $18.4 million in the third quarter of the prior fiscal year. The primary element of the expense increase related to personnel related costs including those associated with an acquired company purchased in fiscal 2011. Operating expenses were 11.8 percent of sales in the third quarter of 2012 compared with 12.0 percent of sales in the prior year period. Operating margins of 16.7 percent increased from 15.1 percent in the prior year period.
Cash and cash equivalents of $119.8 million were $19.2 million higher compared with the end of the third quarter last year, while debt decreased $4.3 million over the same period.
Lindsay’s backlog of unshipped orders at May 31, 2012 was $44.5 million compared with $43.3 million at May 31, 2011 and $87.3 million at February 29, 2012.
Nine Month Results
Total revenues for the nine months ended May 31, 2012 were $423.4 million, a 17 percent increase from $362.8 million for the prior year’s nine-month period. Total irrigation equipment revenues of $367.4 million increased 32 percent from a year ago, while infrastructure revenues decreased 33 percent to $56.1 million. The Company’s operating income for the nine-month period was $52.8 million compared to $46.8 million during the same prior year period. Net earnings were $34.5 million or $2.70 per diluted share, as compared to $30.9 million, or $2.44 per diluted share for the prior year period.
Fiscal 2012 operating costs included $7.2 million of expenses accrued in the Company’s first fiscal quarter, or $0.37 per diluted share on an after tax basis, relating to an estimated increase in the Company’s liability for environmental remediation at its Lindsay, Nebraska facility. Comparatively, fiscal 2011 included environmental remediation expense of $1.2 million, or $0.06 per diluted share after tax.
Outlook
Rick Parod, president and chief executive officer, commented, “Farm incomes and commodity prices have driven positive farmer sentiment, leading to increased domestic irrigation demand. The increase in sales, along with cost reductions and efficiency improvements across our business segments have resulted in higher operating margins in the third quarter.”
Parod added, “The long term fundamentals of the business remain very positive, as growth drivers of expanded food production and efficient and environmentally friendly water use remain intact. Infrastructure demand will continue to be challenging and uncertain until global governments commit to more consistent investments in roads and other infrastructure.”
Third-Quarter Conference Call
Lindsay’s fiscal 2012 third quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (877) 307-0228 domestically, or (706) 758-0065 internationally, and referring to conference ID # 85159441. 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 end of the fourth quarter. 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 manufactures and markets irrigation equipment primarily used in agricultural markets which increase or stabilize crop production while conserving water, energy, and labor. The Company also manufactures and markets infrastructure and road safety products through its wholly owned subsidiaries, Barrier Systems Inc. and Snoline S.P.A. At May 31, 2012, Lindsay had approximately 12.7 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.
For more information regarding Lindsay Corporation, see Lindsay’s Web site at www.lindsay.com. For more information on the Company’s infrastructure products, visitwww.barriersystemsinc.com andwww.snoline.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 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 OPERATIONS
(unaudited)
Three months ended | Nine months ended | |||||||||||||||
May 31, | May 31, | May 31, | May 31, | |||||||||||||
($ in thousands, except per share amounts) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Operating revenues | $ | 172,099 | $ | 153,446 | $ | 423,438 | $ | 362,780 | ||||||||
Cost of operating revenues | 123,071 | 111,947 | 307,668 | 263,049 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Gross profit | 49,028 | 41,499 | 115,770 | 99,731 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Operating expenses: | ||||||||||||||||
Selling expense | 7,324 | 6,929 | 21,136 | 20,858 | ||||||||||||
General and administrative expense | 10,390 | 8,178 | 27,764 | 22,761 | ||||||||||||
Engineering and research expense | 2,527 | 2,789 | 6,827 | 8,125 | ||||||||||||
Environmental remediation expense | — | 462 | 7,225 | 1,175 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total operating expenses | 20,241 | 18,358 | 62,952 | 52,919 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Operating income | 28,787 | 23,141 | 52,818 | 46,812 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (103 | ) | (192 | ) | (376 | ) | (591 | ) | ||||||||
Interest income | 137 | 71 | 327 | 150 | ||||||||||||
Other income (expense), net | (234 | ) | 139 | (314 | ) | 366 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Earnings before income taxes | 28,587 | 23,159 | 52,455 | 46,737 | ||||||||||||
Income tax provision | 9,764 | 7,870 | 17,937 | 15,837 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net earnings | $ | 18,823 | $ | 15,289 | $ | 34,518 | $ | 30,900 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Basic net earnings per share | $ | 1.48 | $ | 1.22 | $ | 2.72 | $ | 2.46 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Diluted net earnings per share | $ | 1.47 | $ | 1.20 | $ | 2.70 | $ | 2.44 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Weighted average shares outstanding | 12,714 | 12,564 | 12,700 | 12,538 | ||||||||||||
Diluted effect of stock equivalents | 100 | 139 | 99 | 139 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Weighted average shares outstanding assuming dilution | 12,814 | 12,703 | 12,799 | 12,677 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Cash dividends per share | $ | 0.090 | $ | 0.085 | $ | 0.270 | $ | 0.255 | ||||||||
|
|
|
|
|
|
|
|
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) | (Unaudited) | |||||||||||
May 31, | May 31 | August 31, | ||||||||||
($ and shares in thousands, except par values) | 2012 | 2011 | 2011 | |||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 119,785 | $ | 100,568 | $ | 108,167 | ||||||
Receivables, net of allowance | 95,693 | 87,588 | 79,006 | |||||||||
Inventories, net | 62,119 | 52,833 | 49,524 | |||||||||
Deferred income taxes | 9,399 | 6,798 | 8,598 | |||||||||
Other current assets | 13,177 | 12,177 | 12,398 | |||||||||
|
|
|
|
|
| |||||||
Total current assets | 300,173 | 259,964 | 257,693 | |||||||||
Property, plant and equipment, net | 56,143 | 57,279 | 58,465 | |||||||||
Other intangible assets, net | 25,709 | 27,430 | 28,639 | |||||||||
Goodwill | 29,866 | 28,815 | 30,943 | |||||||||
Other noncurrent assets | 5,057 | 4,318 | 5,404 | |||||||||
|
|
|
|
|
| |||||||
Total assets | $ | 416,948 | $ | 377,806 | $ | 381,144 | ||||||
|
|
|
|
|
| |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Accounts payable | $ | 38,820 | $ | 42,966 | $ | 32,153 | ||||||
Current portion of long-term debt | 4,286 | 4,286 | 4,286 | |||||||||
Other current liabilities | 45,502 | 40,445 | 42,880 | |||||||||
|
|
|
|
|
| |||||||
Total current liabilities | 88,608 | 87,697 | 79,319 | |||||||||
Pension benefits liabilities | 6,057 | 6,233 | 6,231 | |||||||||
Long-term debt | 1,071 | 5,357 | 4,285 | |||||||||
Deferred income taxes | 10,458 | 10,947 | 12,550 | |||||||||
Other noncurrent liabilities | 8,573 | 1,790 | 3,094 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 114,767 | 112,024 | 105,479 | |||||||||
|
|
|
|
|
| |||||||
Shareholders’ equity: | ||||||||||||
Preferred stock | — | — | — | |||||||||
Common stock | 18,413 | 18,269 | 18,374 | |||||||||
Capital in excess of stated value | 41,580 | 34,162 | 39,058 | |||||||||
Retained earnings | 333,819 | 297,971 | 302,732 | |||||||||
Less treasury stock | (90,961 | ) | (90,961 | ) | (90,961 | ) | ||||||
Accumulated other comprehensive (loss) income, net | (670 | ) | 6,341 | 6,462 | ||||||||
|
|
|
|
|
| |||||||
Total shareholders’ equity | 302,181 | 265,782 | 275,665 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities and shareholders’ equity | $ | 416,948 | $ | 377,806 | $ | 381,144 | ||||||
|
|
|
|
|
|
Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended | ||||||||
($ in thousands) | May 31, 2012 | May 31, 2011 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net earnings | $ | 34,518 | $ | 30,900 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 9,384 | 8,820 | ||||||
Provision for uncollectible accounts receivable | 230 | 248 | ||||||
Deferred income taxes | (3,899 | ) | (2,001 | ) | ||||
Share-based compensation expense | 2,611 | 2,384 | ||||||
Other, net | 132 | (350 | ) | |||||
Changes in assets and liabilities: | ||||||||
Receivables | (20,151 | ) | (21,326 | ) | ||||
Inventories | (14,892 | ) | (5,330 | ) | ||||
Other current assets | (1,371 | ) | (2,929 | ) | ||||
Accounts payable | 8,124 | 15,441 | ||||||
Other current liabilities | (1,597 | ) | 2,642 | |||||
Current taxes payable | 6,864 | 853 | ||||||
Other noncurrent assets and liabilities | 5,943 | (1,077 | ) | |||||
|
|
|
| |||||
Net cash provided by operating activities | 25,896 | 28,275 | ||||||
|
|
|
| |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property, plant and equipment | (7,573 | ) | (5,315 | ) | ||||
Proceeds from sale of property, plant and equipment | 107 | 57 | ||||||
Acquisition of business, net of cash acquired | — | (1,279 | ) | |||||
Proceeds (payment) for settlement of net investment hedge | 1,237 | (1,261 | ) | |||||
|
|
|
| |||||
Net cash used in investing activities | (6,229 | ) | (7,798 | ) | ||||
|
|
|
| |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Issuance of common stock under share-based compensation plans | 387 | 1,086 | ||||||
Common stock withheld from share-based compensation for payroll tax withholdings | (577 | ) | (843 | ) | ||||
Principal payments on long-term debt | (3,214 | ) | (3,214 | ) | ||||
Net borrowing on revolving line of credit | — | 1,212 | ||||||
Excess tax benefits from share-based compensation | 256 | 1,068 | ||||||
Dividends paid | (3,431 | ) | (3,201 | ) | ||||
|
|
|
| |||||
Net cash used in financing activities | (6,579 | ) | (3,892 | ) | ||||
|
|
|
| |||||
Effect of exchange rate changes on cash | (1,470 | ) | 565 | |||||
|
|
|
| |||||
Net increase in cash and cash equivalents | 11,618 | 17,150 | ||||||
Cash and cash equivalents, beginning of period | 108,167 | 83,418 | ||||||
|
|
|
| |||||
Cash and cash equivalents, end of period | $ | 119,785 | $ | 100,568 | ||||
|
|
|
| |||||