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
TUESDAY, MARCH 25, 2003
LINDSAY MANUFACTURING CO. REPORTS
FISCAL 2003 SECOND-QUARTER, SIX-MONTH RESULTS
OMAHA, NEB., MARCH 25, 2003--LINDSAY MANUFACTURING CO. (NYSE: LNN), a leading
manufacturer of center pivot, lateral move, and hose reel irrigation systems,
today reported 18 percent growth in revenues and a 27 percent increase in
earnings per share for the second quarter ended February 28, 2003, compared with
the second quarter of last year.
SECOND-QUARTER RESULTS
Revenues for the second quarter increased to $48.1 million from $40.7 million
for the same period last year. Second-quarter operating income grew 20 percent
to $6.5 million from $5.4 million in the second quarter last year. Net earnings
for the quarter were $5.0 million, or $0.42 per diluted share, compared with
$4.0 million, or $0.33 per diluted share, for the second quarter last year.
Irrigation equipment revenues for the quarter were $45.4 million, a 23 percent
increase from $37.0 million during the second quarter of the prior year.
Diversified products revenues, which have decreased as Lindsay's contract
manufacturing customers reduced their reliance on outsourced manufacturing, were
$2.8 million compared with $3.6 million in the year-ago period, and unchanged
from the first quarter of fiscal 2003. Excluding revenues from acquisitions and
start-ups that occurred during the last half of fiscal 2002, organic revenue
growth in the quarter was 5 percent year over year.
Gross profit rose to $12.3 million from $10.1 million in the prior-year second
quarter, while gross margin increased to 25.5 percent from 24.8 percent.
Operating expenses for the quarter were greater than the prior year's second
quarter, but were in line with the company's expectations as the majority of the
increase was attributed to the operations that were added during the last half
of fiscal 2002.
Commenting on the results, Rick Parod, president and chief executive officer,
said, "I am pleased with our overall performance for the quarter and year to
date. Irrigation equipment achieved revenue growth from both the domestic and
the international markets. We continue to make good progress with our new
international operations, including our South African start-up that had been
importing product and is now manufacturing our Zimmatic products. Additionally,
during the quarter we were successful in hiring a seasoned irrigation sales
manager, an Australian national, to manage and expand our Australian dealer
organization."
Lindsay's order backlog at February 28, 2003, grew to $20.4 million from $17.4
million at February 28, 2002.
SIX-MONTH RESULTS
Total revenues for the six months ending February 28, 2003, were $81.6 million,
an 18 percent increase from $69.2 million for the prior year's six-month period.
Irrigation equipment revenues of $76.0 million were 23 percent greater than a
year ago, while diversified products revenues were $5.6 million, or 24 percent
less than the previous year. Excluding revenues from acquisitions and start-ups
that occurred during the last half of fiscal 2002, organic revenue growth was 6
percent for the six-month period. Net earnings grew 55 percent to $7.8 million,
or $0.66 per diluted share, from $5.1 million, or $0.43 per diluted share, for
the first six months of fiscal 2002. The 2003 six-month net earnings include
other income of $1.8 million, or $0.15 per share, to recognize the cash value of
certain life insurance policies; $1.7 million of this was included in Lindsay's
first quarter. Excluding this item, six-month net earnings rose 20 percent to
$6.1 million, or $0.51 per diluted share.
Shareholders' equity at February 28, 2003, was $98.0 million, or $8.35 per
outstanding common share, compared with $85.6 million, or $7.33 per outstanding
common share, at February 28, 2002. Cash and marketable securities at February
28, 2003, were $41.2 million compared with $41.9 million at February 28, 2002.
FISCAL 2003 OUTLOOK
Concerning the balance of the year, Parod commented, "Our outlook remains
positive for our overall business due to solid interest in our new product
offerings, low financing rates for irrigation equipment purchases, key
agricultural commodity prices that are approximately 20 percent greater than
year-ago levels, and a favorable U.S. farm bill that includes the Environmental
Quality Incentives Program. However, we are also faced with several
uncertainties, including the soft U.S. economy and the duration of U.S. military
action in Iraq. On balance, we continue to believe that we will achieve revenue
and earnings growth during the remainder of our fiscal year."
SECOND-QUARTER CONFERENCE CALL
Lindsay's fiscal 2003 second-quarter 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.
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 February 28, 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
FEBRUARY 28, 2003 AND 2002 AND AUGUST 31, 2002
(UNAUDITED) (UNAUDITED)
FEBRUARY FEBRUARY AUGUST
($ IN THOUSANDS, EXCEPT PAR VALUES) 2003 2002 2002
- ----------------------------------- ---- ---- ----
ASSETS
Cash and cash equivalents $ 5,431 $ 7,646 $ 12,425
Marketable securities 7,971 9,916 13,289
Receivables, net 36,657 31,624 23,385
Inventories, net 21,423 15,309 15,583
Deferred income taxes 2,355 1,870 2,573
Other current assets 944 553 782
--------- --------- ---------
Total current assets 74,781 66,918 68,037
Long-term marketable securities 27,813 24,354 25,419
Property, plant and equipment, net 14,270 13,927 14,512
Other noncurrent assets 7,176 4,555 4,715
--------- --------- ---------
Total assets $ 124,040 $ 109,754 $ 112,683
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 10,008 $ 7,623 $ 6,068
Other current liabilities 13,946 14,653 13,640
--------- --------- ---------
Total current liabilities 23,954 22,276 19,708
Other noncurrent liabilities 2,114 1,847 2,311
--------- --------- ---------
Total liabilities 26,068 24,123 22,019
--------- --------- ---------
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, 17,458,052, 17,409,900 and 17,430,348 shares
issued in February 2003 and 2002 and August 2002) 17,458 17,410 17,430
Capital in excess of stated value 2,467 2,039 2,472
Retained earnings 168,589 156,740 161,574
Less treasury stock, (at cost, 5,724,069 shares) (89,898) (89,898) (89,898)
Accumulated other comprehensive loss (644) (660) (914)
--------- --------- ---------
Total shareholders' equity 97,972 85,631 90,664
--------- --------- ---------
Total liabilities and shareholders' equity $ 124,040 $ 109,754 $ 112,683
========= ========= =========
LINDSAY MANUFACTURING CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND SIX MONTHS ENDED FEBRUARY 28, 2003 AND 2002
(UNAUDITED) (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
--------------------- ---------------------
FEBRUARY FEBRUARY FEBRUARY FEBRUARY
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 2003 2002 2003 2002
- ---------------------------------------- ---- ---- ---- ----
Operating revenues $ 48,127 $ 40,668 $ 81,589 $ 69,213
Cost of operating revenues 35,865 30,586 62,316 53,521
-------- -------- -------- --------
Gross profit 12,262 10,082 19,273 15,692
-------- -------- -------- --------
Operating expenses:
Selling expense 2,459 2,043 5,099 4,159
General and administrative expense 2,693 2,051 5,271 4,076
Engineering and research expense 634 574 1,232 1,086
-------- -------- -------- --------
Total operating expenses 5,786 4,668 11,602 9,321
-------- -------- -------- --------
Operating income 6,476 5,414 7,671 6,371
Interest income, net 390 356 813 793
Other income (expense), net 242 (24) 2,029 155
-------- -------- -------- --------
Earnings before income taxes 7,108 5,746 10,513 7,319
Income tax provision 2,156 1,791 2,677 2,269
-------- -------- -------- --------
Net earnings $ 4,952 $ 3,955 $ 7,836 $ 5,050
======== ======== ======== ========
Basic net earnings per share $ 0.42 $ 0.34 $ 0.67 $ 0.43
======== ======== ======== ========
Diluted net earnings per share $ 0.42 $ 0.33 $ 0.66 $ 0.43
======== ======== ======== ========
Average shares outstanding 11,733 11,655 11,723 11,642
Diluted effect of stock options 158 168 188 165
-------- -------- -------- --------
Average shares outstanding assuming dilution 11,891 11,823 11,911 11,807
======== ======== ======== ========
Cash dividends per share $ 0.035 $ 0.035 $ 0.070 $ 0.070
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