EXHIBIT 99.1
AT THE COMPANY: AT FRB/WEBER SHANDWICK:
Bruce C. Karsk Marilyn Windsor Diane Hettwer Tim Grace
Executive VP and CFO General Inquiries Analyst Inquiries Media Inquiries
402-829-6803 702-515-1260 312-640-6760 312-640-6667
FOR IMMEDIATE RELEASE
MONDAY, OCTOBER 13, 2003
LINDSAY MANUFACTURING CO. REPORTS FISCAL
FOURTH-QUARTER AND 2003 RESULTS
COMPANY ACHIEVES RECORD REVENUES FOR FISCAL 2003
OMAHA, NEB., OCTOBER 13, 2003--LINDSAY MANUFACTURING CO. (NYSE: LNN), a leading
manufacturer of center pivot, lateral move, and hose reel irrigation systems,
today reported its results for the fourth quarter and fiscal year ended August
31, 2003. The company noted that fiscal 2003 marked the second consecutive year
of 12 percent or more revenue growth and 20 percent or better earning per share
growth.
FOURTH-QUARTER RESULTS
Fourth-quarter fiscal 2003 revenues were $33.0 million compared with $32.5
million for the same prior-year quarter. Net earnings rose to $1.9 million, or
$0.16 per diluted share, from $915,000, or $0.08 per diluted share, in prior
year's fourth quarter.
Revenues from both the irrigation equipment segment and diversified product
segment were slightly higher during the quarter. Fourth-quarter gross margin
rose to 24.2 percent from 17.5 percent, aided by a year-end LIFO reserve
inventory gain of $660,000. Excluding the LIFO gain, gross margin was 22.2
percent. Operating expenses were higher in the fourth quarter due to increased
selling costs as the company added select investments to support domestic and
international growth initiatives. Additionally, the company increased its
advertising and marketing expenditures during this year's fourth quarter
compared with last year.
Lindsay's order backlog at August 31, 2003, improved to $21.9 million compared
with $18.9 million at August 31, 2002.
Rick Parod, president and chief executive officer, commented, "Our
fourth-quarter results reflect a good performance, even after taking into
account significantly lower exports sales to the Middle East. Both our domestic
irrigation and our international operations had revenue expansion."
Parod added, "Overall, sales are growing and gross margin is improving. While we
are pleased with our progress, we continue to see significant opportunities. We
will continue to challenge all of our operations to continuously improve their
market and cost positions."
FISCAL 2003 RESULTS
Fiscal 2003 total revenues were $163.4 million, up 12 percent from $145.9
million a year ago. Net earnings increased 20 percent to $12.9 million, or $1.08
per diluted share, in fiscal 2003 compared with $10.7 million, or $0.90 per
diluted share, in fiscal 2002.
Irrigation equipment revenues increased by 14 percent to $151.3 million from
$132.7 million in the prior fiscal year. Diversified products revenues were
$12.1 million compared with $13.2 million in fiscal 2002. Fiscal 2003 gross
margin increased to 24.3 percent from 22.6 percent in the prior year. Gross
margin rose due to tight manufacturing and raw material cost control, a more
favorable product mix, and increased manufacturing throughput. Operating income
rose 25 percent to $16.4 million from $13.1 million, as operating margin
increased to 10.0 percent from 9.0 percent in fiscal 2002.
Shareholders' equity at August 31, 2003, was $104.3 million, or $8.89 per
outstanding common share, compared with $92.4 million, or $7.89 per outstanding
common share, at August 31, 2002. Cash and marketable securities at August 31,
2003, were $62.8 million compared with $51.1 million at August 31, 2002.
Operating cash flow for the year was $16.3 million compared with $11.6 million
for fiscal 2002.
On July 29, 2003, Lindsay announced that it had increased its regular quarterly
cash dividend by 43 percent to $0.05 per share from $0.035 per share. The new
annual indicated rate is $0.20 per share, up from an annual indicated rate of
$0.14 per share.
OTHER INCOME ITEM RESTATED
Lindsay had recorded other non-operating income of $1.7 million during its
quarter ended November 30, 2002, in order to account for the previously
unrecorded cumulative cash surrender value of certain life insurance policies
that had accumulated since 1994. After reviewing this accounting treatment
further, Lindsay has revised previously reported quarterly results for fiscal
2003 to record the cumulative cash surrender value as a correction of error in
prior periods. Accordingly, last week the company amended its Form 10-Qs for
each of the three prior quarters of fiscal year 2003, reducing previously
reported first quarter and year-to-date non-operating income by $1.7 million.
This reduction in other non-operating income did not impact the financial
condition or operating cash flows of Lindsay during fiscal 2003.
FISCAL 2004 OUTLOOK
Parod commented, "Looking ahead to fiscal 2004, we expect continued growth in
company-wide revenues and earnings for the year. We anticipate further expansion
in our U.S. operations and on the international front, we expect to continue to
grow sales in Western Europe, South Africa and Brazil. We also view
international as our biggest opportunity to improve sales margins. For the
fiscal year, we anticipate double-digit growth in earnings on revenue growth of
approximately 8 to 10 percent, excluding acquisitions. Our mission is to be the
worldwide leader in providing intelligent water and plant nutrient management
systems. We have the strong cash flow and financial flexibility to create
shareholder value by pursuing a balance of accretive acquisitions, organic
growth opportunities, share repurchase and dividend payments."
FOURTH-QUARTER AND FISCAL YEAR-END CONFERENCE CALL
Lindsay's fiscal 2003 investor conference call is scheduled for 11 a.m. ET
today. This call will be simulcast and available over the Internet via the web
site www.vcall.com. The webcast will be available for replay for a period of 30
days. Lindsay will have a slide presentation available to augment management's
formal presentation, which will be accessible via the company's website at
www.lindsaymanufacturing.com.
ABOUT THE COMPANY
Lindsay manufactures and markets Zimmatic, Greenfield, and Perrot center pivot,
lateral move and hose reel irrigation systems and GrowSmart controls, all of
which are used by farmers to increase or stabilize crop production while
conserving water, energy, and labor. The Company also produces large diameter
steel tubing and provides outsourced manufacturing and production services for
other companies. At August 31, 2003, Lindsay had approximately 11.7 million
shares outstanding, which are traded on the New York Stock Exchange under the
symbol LNN.
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. Forward-looking statements include the information concerning
possible or assumed future results of operations of the Company and those
statements preceded by, followed by or including the words "expectation,"
"outlook," "could," "may," "should," or similar expressions. For these
statements, we claim the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995.
FOR MORE INFORMATION REGARDING LINDSAY MANUFACTURING CO.,
SEE LINDSAY'S WEBSITE AT www.lindsaymanufacturing.com
- Financial Tables Follow -
LINDSAY MANUFACTURING CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AUGUST 31, 2003 AND 2002
<Table>
<Caption>
AUGUST AUGUST
(IN THOUSANDS, EXCEPT PAR VALUES) 2003 2002
- --------------------------------- ---------- ----------
unaudited unaudited
ASSETS
Current Assets:
Cash and cash equivalents $ 15,368 $ 12,425
Marketable securities 8,770 13,289
Receivables, net 22,970 23,729
Inventories, net 20,019 15,583
Deferred income taxes 1,743 2,573
Other current assets 1,010 782
---------- ----------
Total current assets 69,880 68,381
Long-term marketable securities 38,674 25,419
Property, plant and equipment, net 13,889 14,512
Other noncurrent assets 8,219 6,406
---------- ----------
Total assets $ 130,662 $ 114,718
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 8,228 $ 6,068
Other current liabilities 15,495 13,984
---------- ----------
Total current liabilities 23,723 20,052
Pension benefits liabilities 2,489 1,688
Noncurrent liabilities 159 623
---------- ----------
Total liabilities 26,371 22,363
---------- ----------
Commitments and Contingencies
Shareholders' equity:
Preferred stock, ($1 par value, 2,000,000 shares
authorized, no shares issued and outstanding) -- --
Common stock, ($1 par value, 25,000,000 shares
authorized, 17,459,561 and 17,430,348 shares
issued in August 2003 and 2002) 17,460 17,430
Capital in excess of stated value 2,484 2,472
Retained earnings 174,333 163,265
Less treasury stock, (at cost, 5,724,069 shares) (89,898) (89,898)
Accumulated other comprehensive gain (loss) (88) (914)
---------- ----------
Total shareholders' equity 104,291 92,355
---------- ----------
Total liabilities and shareholders' equity $ 130,662 $ 114,718
========== ==========
</Table>
LINDSAY MANUFACTURING CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND YEAR ENDED AUGUST 31, 2003 AND 2002
<Table>
<Caption>
(UNAUDITED) (UNAUDITED)
THREE MONTHS ENDED YEAR ENDED
----------------------------- -----------------------------
AUGUST AUGUST AUGUST AUGUST
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2003 2002 2003 2002
- ---------------------------------------- ------------ ------------ ------------ ------------
Operating revenues $ 32,952 $ 32,544 $ 163,374 $ 145,890
Cost of operating revenues 24,978 26,862 123,628 112,963
------------ ------------ ------------ ------------
Gross profit 7,974 5,682 39,746 32,927
------------ ------------ ------------ ------------
Operating expenses:
Selling expense 2,756 2,385 10,517 8,804
General and administrative expense 2,277 2,295 10,285 8,630
Engineering and research expense 671 696 2,578 2,377
------------ ------------ ------------ ------------
Total operating expenses 5,704 5,376 23,380 19,811
------------ ------------ ------------ ------------
Operating income 2,270 306 16,366 13,116
Interest income, net 414 478 1,577 1,647
Other income, net 260 394 844 617
------------ ------------ ------------ ------------
Earnings before income taxes 2,944 1,178 18,787 15,380
Income tax provision 1,024 263 5,900 4,650
------------ ------------ ------------ ------------
Net earnings $ 1,920 $ 915 $ 12,887 $ 10,730
============ ============ ============ ============
Basic net earnings per share $ 0.16 $ 0.08 $ 1.10 $ 0.92
============ ============ ============ ============
Diluted net earnings per share $ 0.16 $ 0.08 $ 1.08 $ 0.90
============ ============ ============ ============
Average shares outstanding 11,735 11,704 11,729 11,674
Diluted effect of stock options 208 210 180 184
------------ ------------ ------------ ------------
Average shares outstanding assuming dilution 11,943 11,914 11,909 11,858
============ ============ ============ ============
Cash dividends per share $ 0.050 $ 0.035 $ 0.155 $ 0.140
============ ============ ============ ============
</Table>
LINDSAY MANUFACTURING CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDED AUGUST 31, 2003 AND 2002
(UNAUDITED)
<Caption>
August August
($ in thousands) 2003 2002
- ---------------- ------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ 12,887 $ 10,730
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization 3,525 3,402
Amortization of marketable securities premiums, net (145) (212)
Gain on sale of fixed assets (76) (78)
Provision for uncollectible accounts receivable (275) 271
Deferred income taxes 830 (242)
Stock option tax benefits (expense) 32 269
Equity in net earnings of equity method investments (125) (253)
Other, net -- (268)
Changes in assets and liabilities:
Receivables, net 1,034 628
Inventories, net (4,436) (2,720)
Other current assets 1,211 (308)
Accounts payable, trade 2,160 (2,177)
Other current liabilities 510 1,674
Current taxes payable 1,001 397
Other noncurrent assets and liabilities (1,881) 450
------------ ------------
Net cash provided by operating activities 16,252 11,563
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (2,803) (2,217)
Acquisitions of business -- (4,813)
Proceeds from sale of property, plant and equipment 63 206
Purchases of marketable securities available for sale (10,476) --
Proceeds from maturities of marketable securities available for sale -- --
Purchases of marketable securities held to maturity (12,465) (15,904)
Proceeds from maturities of marketable securities held to maturity 14,231 7,555
Equity Investment -- (80)
------------ ------------
Net cash used in provided by investing activities (11,450) (15,253)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under stock option
plan, net of repurchases and cancellations 10 186
Dividends paid (1,818) (1,631)
------------ ------------
Net cash used in financing activities (1,808) (1,445)
------------ ------------
Effect of exchange rate changes on cash (51) (15)
Net increase (decrease) in cash and cash equivalents 2,943 (5,150)
Cash and cash equivalents, beginning of period 12,425 17,575
------------ ------------
Cash and cash equivalents, end of period $ 15,368 $ 12,425
============ ============
</Table>