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EXHIBIT 99.1
<Table>
<Caption>
AT THE COMPANY: AT FINANCIAL RELATIONS BOARD:
Bruce C. Karsk David Downing Marilyn Windsor Diane Hettwer Tim Grace
EVP, Treasurer and Secretary VP and CFO General Inquiries Analyst Inquiries Media Inquiries
402-829-6803 402-827-6235 702-515-1260 312-640-6760 312-640-6667
</Table>
DRAFT
WEDNESDAY, JUNE 22, 2005
LINDSAY MANUFACTURING CO. REPORTS FISCAL 2005 THIRD-QUARTER, NINE-MONTH RESULTS
OMAHA, NEB., JUNE 22, 2005--LINDSAY MANUFACTURING CO. (NYSE: LNN), a leading
manufacturer of center pivot, lateral move, and hose reel irrigation systems,
today announced results for its fiscal third quarter and nine months ended May
31, 2005.
THIRD-QUARTER RESULTS
Third-quarter fiscal 2005 total revenues were $56.0 million, a 10 percent
decline from $62.3 million for the year-ago period. Net earnings were $4.0
million, or $0.34 per diluted share, versus $4.3 million, or $0.36 per diluted
share, in the prior year's third quarter.
Total irrigation equipment revenues declined 15 percent to $50.0 million from
$58.7 million in the prior fiscal year's third quarter, as lower worldwide
agricultural commodity prices reduced demand for irrigation equipment globally.
Domestic irrigation revenues declined 22 percent, while international irrigation
revenues increased 4 percent from the prior-year's quarter due to revenues from
Stettyn, Lindsay's South African subsidiary that was acquired in the last
quarter of fiscal 2004, and growth in export sales. Diversified products
delivered a very strong performance with revenues of $6.0 million compared with
$3.5 million in the year-ago period, an increase of 70 percent.
Rick Parod, president and chief executive officer, commented, "Demand for
irrigation equipment worldwide continues to reflect the combination of higher
costs for energy, fertilizer, and other agricultural inputs, as well as lower
crop prices, which have caused farmers to continue to defer their irrigation
equipment purchases. On the other hand, our diversified products business again
delivered strong revenue gains, reflecting our strategic decision to invest
additional resources into this business."
Gross margin improved to 22.4 percent from 20.9 percent a year ago, primarily on
pricing that fully reflected the steel cost increases of fiscal 2004. Operating
income was $5.7 million versus $6.1 million in the comparable fiscal 2004
quarter, and operating expenses were flat at $6.8 million, as savings due to
cost-reduction actions and lower insurance costs were offset by higher
Sarbanes-Oxley compliance expenses. Net earnings were $4.0 million, or $0.34 per
diluted share, compared with $4.3 million, or $0.36 per diluted share, in the
third quarter of fiscal 2004.
Lindsay's order backlog at May 31, 2005, was $11.1 million compared with $15.3
million at February 28, 2005, and $20.2 million at May 31, 2004.
NINE-MONTH RESULTS
Total revenues for the nine months were $137.2 million, a 9 percent decrease
from $150.3 million for the prior year's nine-month period. Total irrigation
equipment revenues of $121.5
million declined 14 percent from a year ago, while diversified products revenues
grew 78 percent, rising to $15.7 million. Net earnings were $4.8 million, or
$0.40 per diluted share, compared with $8.9 million, or $0.75 per diluted share,
for the first nine months of fiscal 2004.
Cash from operations for the nine months was $8.8 million, an increase of $9.5
million from the year-ago period. In the third quarter, Lindsay repurchased
approximately 186,000 shares of common stock at an average price of $18.69 per
share, for an aggregate cost of approximately $3.5 million. During fiscal 2005,
the company has used $6.6 million of internally generated cash to repurchase
approximately 324,000 shares. At May 31, 2005, the remaining amount authorized
under the company's current share repurchase program was approximately 881,000
shares.
Cash and marketable securities at May 31, 2005 were $53.7 million compared with
$57.2 million at May 31, 2004. Shareholders' equity at May 31, 2005, was $110.0
million, or $9.55 per outstanding common share, compared with $111.8 million, or
$9.50 per outstanding common share, at May 31, 2004.
OUTLOOK
Parod stated, "The softness in demand in the worldwide agricultural irrigation
market continues to adversely affect short-term demand and will impact our
performance in the fourth fiscal quarter. However, we have taken action to
prudently reduce costs and improve capacity utilization while maintaining our
strong competitive position. The long-term drivers of our business remain
robust. Water continues to become more valuable and farmers are seeking ways to
reduce costs and increase productivity."
He added, "We will continue to leverage our strong cash flow and financial
flexibility to create shareholder value by seeking a balance of organic growth
opportunities, accretive acquisitions, share repurchases, and dividend payments.
Through these initiatives, we will continue to pursue our previously stated
long-term goals of sustainable growth in revenues, gross margins, operating
margins, and return on beginning equity."
THIRD-QUARTER CONFERENCE CALL
Lindsay's third-quarter fiscal 2005 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, Stettyn 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 May 31, 2005, Lindsay had approximately 11.5 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 STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS AND NINE MONTHS ENDED MAY 31, 2005 AND 2004
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
---------------------- ---------------------
MAY MAY MAY MAY
2005 2004 2005 2004
---- ---- ---- ----
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
- ----------------------------------------
Operating revenues ............................... $ 55,985 $ 62,286 $137,239 $150,274
Cost of operating revenues ....................... 43,433 49,299 110,348 118,323
-------- -------- -------- --------
Gross profit ..................................... 12,552 12,987 26,891 31,951
-------- -------- -------- --------
Operating expenses:
Selling expense ................................ 2,692 2,830 8,438 8,588
General and administrative expense ............. 3,421 3,255 10,415 9,527
Engineering and research expense ............... 714 762 2,070 2,198
-------- -------- -------- --------
Total operating expenses ......................... 6,827 6,847 20,923 20,313
-------- -------- -------- --------
Operating income ................................. 5,725 6,140 5,968 11,638
Interest income, net ............................. 264 341 820 1,126
Other income, net ................................ (162) (53) 290 437
-------- -------- -------- --------
Earnings before income taxes ..................... 5,827 6,428 7,078 13,201
Income tax provision ............................. 1,828 2,083 2,304 4,260
-------- -------- -------- --------
Net earnings ..................................... $ 3,999 $ 4,345 $ 4,774 $ 8,941
======== ======== ======== ========
Basic net earnings per share ..................... $ 0.34 $ 0.37 $ 0.41 $ 0.76
======== ======== ======== ========
Diluted net earnings per share ................... $ 0.34 $ 0.36 $ 0.40 $ 0.75
======== ======== ======== ========
Average shares outstanding ....................... 11,596 11,760 11,693 11,752
Diluted effect of stock options .................. 83 187 155 207
-------- -------- -------- --------
Average shares outstanding assuming dilution ..... 11,679 11,947 11,848 11,959
======== ======== ======== ========
Cash dividends per share ......................... $ 0.055 $ 0.050 $ 0.165 $ 0.150
======== ======== ======== ========
LINDSAY MANUFACTURING CO. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MAY 31, 2005 AND 2004 AND AUGUST 31, 2004
(UNAUDITED) (UNAUDITED)
MAY MAY AUGUST
2005 2004 2004
---- ---- ----
($ IN THOUSANDS, EXCEPT PAR VALUES)
ASSETS
Current Assets:
Cash and cash equivalents ................................... $ 19,755 $ 12,055 $ 8,973
Marketable securities ....................................... 11,759 12,692 14,802
Receivables ................................................. 32,392 36,427 34,369
Inventories ................................................. 22,684 22,700 19,780
Deferred income taxes ....................................... 1,579 2,539 1,026
Other current assets ........................................ 3,426 2,142 2,422
--------- --------- ---------
Total current assets ........................................ 91,595 88,555 81,372
Long-term marketable securities ............................... 22,154 32,462 32,527
Property, plant and equipment, net ............................ 16,732 14,992 16,355
Other noncurrent assets ....................................... 8,654 8,394 8,747
--------- --------- ---------
Total assets .................................................. $ 139,135 $ 144,403 $ 139,001
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable ............................................ $ 10,398 $ 9,879 $ 9,117
Other current liabilities ................................... 13,899 20,261 15,359
--------- --------- ---------
Total current liabilities ................................... 24,297 30,140 24,476
Pension benefits liabilities .................................. 4,733 2,315 2,169
Noncurrent liabilities ........................................ 155 179 172
--------- --------- ---------
Total liabilities ............................................. 29,185 32,634 26,817
--------- --------- ---------
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, 17,565,184, 17,485,679 and 17,493,841
shares issued in May 2005 and 2004
and August 2004, respectively) ........................... 17,565 17,486 17,494
Capital in excess of stated value ......................... 3,500 2,677 2,966
Retained earnings ......................................... 184,064 181,511 181,209
Less treasury stock, (at cost, 6,048,448, 5,724,069 and
5,724,069 shares, respectively) ......................... (96,547) (89,898) (89,898)
Accumulated other comprehensive income (loss), net ........ 1,368 (7) 413
--------- --------- ---------
Total shareholders' equity .................................... 109,950 111,769 112,184
--------- --------- ---------
Total liabilities and shareholders' equity .................... $ 139,135 $ 144,403 $ 139,001
========= ========= =========
LINDSAY MANUFACTURING CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED MAY 31, 2005 AND 2004
(UNAUDITED)
MAY MAY
($ IN THOUSANDS) 2005 2004
- ---------------- ---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings ...................................................... $ 4,774 $ 8,941
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization .................................. 2,639 2,242
Amortization of marketable securities premiums, net ............ 176 109
Loss (gain) on sale of property, plant and equipment ........... 21 (30)
Provision for uncollectible accounts receivable ................ 72 178
Equity in net (earnings) loss of equity method investments ..... (201) 235
Deferred income taxes .......................................... (53) (134)
Other, net ..................................................... 28 (56)
Changes in assets and liabilities:
Receivables .................................................... 2,664 (13,432)
Inventories .................................................... (2,454) (2,522)
Other current assets ........................................... (438) (1,335)
Accounts payable ............................................... 803 1,694
Other current liabilities ...................................... (3,266) 3,379
Current taxes payable .......................................... 1,370 661
Other noncurrent assets and liabilities ........................ 2,640 (630)
-------- --------
Net cash provided by (used in) operating activities ............... 8,775 (700)
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment ........................ (2,903) (3,308)
Proceeds from sale of property, plant and equipment ............... 24 90
Purchases of marketable securities held-to-maturity ............... - (2,982)
Proceeds from maturities or sales of marketable securities
held-to-maturity ............................................... - 6,676
Purchases of marketable securities available-for-sale ............. (1,841) (7,371)
Proceeds from maturities or sales of marketable securities
available-for-sale .............................................. 14,500 5,861
-------- --------
Net cash provided by (used in) investing activities ............... 9,780 (1,034)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock option plan ................ 561 225
Repurchases of common shares ...................................... (6,649) -
Dividends paid .................................................... (1,919) (1,763)
-------- --------
Net cash used in financing activities ............................. (8,007) (1,538)
-------- --------
-------- --------
Effect of exchange rate changes on cash ........................... 234 (41)
-------- --------
Net increase (decrease) in cash and cash equivalents .............. 10,782 (3,313)
Cash and cash equivalents, beginning of period .................... 8,973 15,368
-------- --------
Cash and cash equivalents, end of period .......................... $ 19,755 $ 12,055
======== ========