Lindsay (LNN) 8-K Lindsay Corporation Reports Fiscal 2019 First Quarter Results

EXHIBIT 99.1

     2222 NO. 111^TH ST. OMAHA, NE 68164 TEL:402-829-6800 FAX:402-829-6836

For further information, contact:

LINDSAY CORPORATION:	HALLIBURTON INVESTOR RELATIONS:
Brian Ketcham	Hala Elsherbini or Geralyn DeBusk
Senior Vice President & Chief Financial Officer	972-458-8000
402-827-6579

Lindsay Corporation Reports Fiscal 2019 First Quarter Results

• Infrastructure revenues increased 15 percent on higher Road Zipper System^® sales

• Overall revenues decreased as a result of previously announced business divestitures

• Excluding impact of divestitures, North America irrigation revenues increased 5 percent

• GAAP diluted earnings per share of $0.11 ($0.38 adjusted)¹, compared to $0.30 in the prior year

OMAHA, Neb., January 8, 2019—Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its first quarter ended November 30, 2018.

First Quarter Summary

Revenues for the first quarter of fiscal 2019 were $112.0 million, a decrease of $12.5 million, or 10 percent, compared to revenues of $124.5 million in the prior year’s first quarter. Revenues decreased $14.0 million as a result of the completion of previously announced business divestitures.

Net earnings for the quarter were $1.2 million and diluted earnings per share were $0.11, compared with net earnings of $3.2 million and diluted earnings per share of $0.30 for the same period in the prior year. Net earnings for the quarter were reduced byafter-tax costs of $2.9 million, or $0.27 per diluted share, related to the Company’sFoundation for Growth initiative. Adjusted net earnings for the first quarter were $4.1 million, or $0.38 per diluted share.¹

“As expected, market headwinds in North America constrained demand for irrigation equipment in our first quarter; however disciplined price management in response to higher input costs led to revenue growth for the quarter,” said Tim Hassinger, President and Chief Executive Officer. “We continue to make progress on ourFoundation for Growth initiative, and during the quarter we completed the last of our previously announced divestitures.”

Segment Results

Irrigation segment revenues for the first quarter of fiscal 2019 were $87.6 million, a decrease of $15.8 million, or 15 percent, compared to $103.4 million in the prior year’s first quarter. Excluding the impact of the divestitures, North America irrigation revenues of $56.5 million increased $2.7 million, or 5 percent, compared to the prior year. International irrigation revenues of $31.1 million decreased $4.5 million, or 13 percent, compared to the prior year. Differences in foreign currency exchange rates accounted for $2.4 million of the decline.

Irrigation segment operating margin was 8.9 percent of sales in the first quarter (9.0 percent adjusted)¹, compared to 7.6 percent of sales in the prior year. Improved operating margin resulted from improvement in North America, supported by the impact of the divestitures as well as price realization and a more favorable product mix.

Infrastructure segment revenues for the first quarter of fiscal 2019 were $24.3 million, an increase of $3.1 million, or 15 percent, compared to $21.2 million in the prior year’s first quarter. The increase resulted from higher Road Zipper System^® sales which were partially offset by lower sales of road safety products.

¹  Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted figures at end of document.

Infrastructure segment operating margin was 17.1 percent of sales in the first quarter (17.6 percent adjusted)¹, compared to 15.5 percent of sales in the first quarter of the prior year. Improved operating margin resulted from a more favorable product mix and lower operating costs compared to the prior year.

The backlog of unshipped orders at November 30, 2018 was $48.9 million, compared with $80.3 million at November 30, 2017 reflecting a decrease in both the Irrigation and Infrastructure backlogs. Approximately $13.0 million of the backlog reduction resulted from the business divestitures and $14.0 million is from a large infrastructure project completed in the prior fiscal year.                

Foundation for Growth Initiative

In fiscal 2018, the Company announced a defined performance improvement initiative, referred to asFoundation for Growth, with the objectives of simplifying the business and achieving operating margin performance of 11 percent to 12 percent in fiscal 2020, exclusive of market changes.

First quarter fiscal 2019 operating expenses include pre-tax costs of $4.0 million in connection with theFoundation for Growth initiative, of which $3.8 million represents professional consulting fees with the remainder representing severance costs and a loss on sale of a business. These costs, and additional future costs anticipated in connection with this initiative, are expected to be recovered through improved operating income in fiscal 2020.

Outlook

“Passage of the 2018 farm bill provides a source of modest optimism that North America irrigation market conditions will see improvement.” said Mr. Hassinger. “In the international markets, we are seeing signs of improved conditions in Brazil as well as increased interest in developing markets.”

Mr. Hassinger added, “We continue to build a solid pipeline of Road Zipper System projects to support growth in the infrastructure business; however, the long lead times required to complete these projects can impact the timing of when we will realize the value from the increased focus on this business.”

First Quarter Conference Call

Lindsay’s fiscal 2019 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 is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. The Lindsay family of irrigation brands includes Zimmatic^® and FieldNET^® as well as irrigation consulting, design, advancedmachine-to-machine communication, remote control, monitoring and scheduling technology, and wireless networking 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, visitwww.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.

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LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

	Three months ended
(in thousands, except per share amounts)	November 30, 2018			November 30, 2017
Operating revenues	$	111,951		$	124,526
Cost of operating revenues		83,303			92,129
Gross profit		28,648			32,397
Operating expenses:
Selling expense		7,982			10,225
General and administrative expense		15,058			11,918
Engineering and research expense		3,568			4,053
Total operating expenses		26,608			26,196
Operating income		2,040			6,201
Interest expense		(1,205	)		(1,181	)
Interest income		654			320
Other income (expense), net		192			(548	)
Earnings before income taxes		1,681			4,792
Income tax expense		469			1,607
Net earnings	$	1,212		$	3,185
Earnings per share:
Basic	$	0.11		$	0.30
Diluted	$	0.11		$	0.30
Shares used in computing earnings per share:
Basic		10,766			10,705
Diluted		10,806			10,740
Cash dividends declared per share	$	0.31		$	0.30

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LINDSAY CORPORATION AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Unaudited)

	Three months ended
(in thousands)	November 30, 2018			November 30, 2017
Operating revenues:
Irrigation segment	$	87,610		$	103,353
Infrastructure segment		24,341			21,173
Total operating revenues	$	111,951		$	124,526
Operating income:
Irrigation segment	$	7,783		$	7,851
Infrastructure segment		4,168			3,291
Corporate		(9,911	)		(4,941	)
Total operating income	$	2,040		$	6,201

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 irrigation consulting and design, remote control and monitoring, irrigation scheduling, andmachine-to-machine technology.

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.

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LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in thousands)	November 30, 2018			November 30, 2017			August 31, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	137,217		$	109,450		$	160,787
Receivables, net		84,864			79,774			69,107
Inventories, net		88,912			93,994			79,233
Prepaid expenses		3,199			3,555			3,883
Assetsheld-for-sale		2,744			—			10,837
Other current assets		8,386			9,461			7,204
Total current assets		325,322			296,234			331,051
Property, plant, and equipment, net		60,482			72,940			57,248
Intangibles, net		26,576			41,702			27,376
Goodwill		64,557			77,127			64,671
Deferred income tax assets		5,639			3,111			6,645
Other noncurrent assets, net		19,943			12,293			13,265
Total assets	$	502,519		$	503,407		$	500,256
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	41,338		$	41,046		$	30,530
Current portion of long-term debt		206			202			205
Liabilitiesheld-for-sale		—			—			2,424
Other current liabilities		41,480			48,875			46,935
Total current liabilities		83,024			90,123			80,094
Pension benefits liabilities		5,803			6,223			5,874
Long-term debt		116,518			116,724			116,570
Deferred income tax liabilities		1,048			1,649			1,083
Other noncurrent liabilities		19,451			19,456			19,769
Total liabilities		225,844			234,175			223,390
Shareholders’ equity:
Preferred stock		—			—			—
Common stock		18,870			18,805			18,841
Capital in excess of stated value		68,710			63,191			68,465
Retained earnings		483,811			477,584			484,886
Less treasury stock - at cost		(277,238	)		(277,238	)		(277,238	)
Accumulated other comprehensive loss, net		(17,478	)		(13,110	)		(18,088	)
Total shareholders’ equity		276,675			269,232			276,866
Total liabilities and shareholders’ equity	$	502,519		$	503,407		$	500,256

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LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three months ended
(in thousands)	November 30, 2018			November 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	1,212		$	3,185
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		3,424			4,335
Loss on sale of business		67			—
Provision for uncollectible accounts receivable		(159	)		112
Deferred income taxes		742			2,111
Share-based compensation expense		1,303			1,001
Other, net		(1,053	)		614
Changes in assets and liabilities:
Receivables		(14,782	)		(6,526	)
Inventories		(11,387	)		(8,672	)
Prepaid expenses and other current assets		298			(15	)
Accounts payable		13,917			4,642
Other current liabilities		(7,106	)		(6,156	)
Other noncurrent assets and liabilities		(792	)		399
Net cash used in operating activities		(14,316	)		(4,970	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(5,701	)		(1,991	)
Proceeds from settlement of net investment hedges		962			101
Payments for settlement of net investment hedges		—			(1,176	)
Other investing activities, net		8			74
Net cash used in investing activities		(4,731	)		(2,992	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		177			132
Common stock withheld for payroll tax obligations		(1,120	)		(828	)
Principal payments on long-term debt		(51	)		(50	)
Dividends paid		(3,344	)		(3,216	)
Net cash used in financing activities		(4,338	)		(3,962	)
Effect of exchange rate changes on cash and cash equivalents		(185	)		(246	)
Net change in cash and cash equivalents		(23,570	)		(12,170	)
Cash and cash equivalents, beginning of period		160,787			121,620
Cash and cash equivalents, end of period	$	137,217		$	109,450

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LINDSAY CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TONON-GAAP FINANCIAL MEASURES

(Unaudited)

Thenon-GAAP tables below disclose (a) the impact on diluted earnings per share of consulting fees, severance costs and loss from business divestitures, associated with the Company’s Foundation for Growth Initiative (“FFG costs”), (b) the impact on operating income of FFG costs, and (c) the impact on segment operating income of FFG costs. Management believes adjusted net earnings, adjusted diluted earnings per share and adjusted operating income are important indicators of the Company’s business performance because they exclude items that may not be indicative of, or may be unrelated to, the Company’s underlying operating results, and provide a useful baseline for analyzing trends in the business.Non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. These adjusted financial measures should not be considered in isolation or as a substitute for reported net earnings, diluted earnings per share and operating income. Thesenon-GAAP financial measures reflect an additional way of viewing the Company’s operations that, when viewed with the GAAP results and the following reconciliations to the corresponding GAAP financial measures, management believes provides a more complete understanding of the Company’s business.

	Three months ended
(in thousands, except per share amounts)	November 30, 2018			Diluted earnings per share
Net earnings - reported GAAP measure	$	1,212		$	0.11
FFG costs - after tax		2,916			0.27
Net earnings - adjusted	$	4,128		$	0.38
Average shares outstanding - diluted					10,806
	For the three months ended November 30, 2018
Operating income reconciliation	Consolidated			Irrigation			Infrastructure			Corporate
Operating income - reported GAAP measure	$	2,040		$	7,783		$	4,168		$	(9,911	)
FFG costs - before tax		3,995			126			112			3,757
Adjusted operating income	$	6,035		$	7,909		$	4,280		$	(6,154	)
Operating revenues	$	111,951		$	87,610		$	24,341		$	—
Operating income as a percent of operating revenues		1.8	%		8.9	%		17.1	%		N/A
Adjusted operating income as a percent of operating revenues		5.4	%		9.0	%		17.6	%		N/A

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