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EXHIBIT 99.1
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
FOR IMMEDIATE RELEASE
THURSDAY, JUNE 30, 2005
LINDSAY MANUFACTURING CO. ADJUSTS 2005 FISCAL THIRD-QUARTER,
NINE-MONTH FINANCIAL RESULTS FOR SUBSEQUENT EVENT
OMAHA, NEB., JUNE 30, 2005--LINDSAY MANUFACTURING CO. (NYSE: LNN), a leading
manufacturer of center pivot, lateral move, and hose reel irrigation systems,
issued a press release on June 22, 2005 detailing the Company's financial
results for the third quarter and first nine months of fiscal 2005.
Subsequently, the Company settled a pending lawsuit through mediation on June
23, 2005. Under generally accepted accounting principles, the settlement of this
litigation requires that the Company increase the estimate of settlement costs
related to this matter as of May 31, 2005 by approximately $0.3 million. This
revised estimate is recorded as an increase in other current liabilities in the
accompanying consolidated balance sheets at May 31, 2005, and a reduction of
other income, net, in the accompanying consolidated statements of operations for
the three and nine months ended May 31, 2005. The Company previously reported
diluted net earnings per share of $0.34 and $0.40 for the three and nine months,
respectively, ended May 31, 2005. Including this adjustment, diluted net
earnings per share for the three and nine-month periods were $0.32 and $0.38,
respectively.
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.
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 ................................ (496) (53) (44) 437
--------- --------- --------- ---------
Earnings before income taxes ..................... 5,493 6,428 6,744 13,201
Income tax provision ............................. 1,723 2,083 2,199 4,260
--------- --------- --------- ---------
Net earnings ..................................... $ 3,770 $ 4,345 $ 4,545 $ 8,941
========= ========= ========= =========
Basic net earnings per share ..................... $ 0.33 $ 0.37 $ 0.39 $ 0.76
========= ========= ========= =========
Diluted net earnings per share ................... $ 0.32 $ 0.36 $ 0.38 $ 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 ................................... 1,684 2,539 1,026
Other current assets .................................... 3,426 2,142 2,422
--------- --------- ---------
Total current assets .................................... 91,700 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 .............................................. $ 139,240 $ 144,403 $ 139,001
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable ........................................ $ 10,398 $ 9,879 $ 9,117
Other current liabilities ............................... 14,234 20,261 15,359
--------- --------- ---------
Total current liabilities ............................... 24,632 30,140 24,476
Pension benefits liabilities .............................. 4,733 2,315 2,169
Noncurrent liabilities .................................... 155 179 172
--------- --------- ---------
Total liabilities ......................................... 29,520 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 ..................................... 183,834 181,511 181,209
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 ................................ 109,720 111,769 112,184
--------- --------- ---------
Total liabilities and shareholders' equity ................ $ 139,240 $ 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 ........................................................... $ 4,545 $ 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 (discounts), 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 ............................................... (158) (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 ........................................... (2,931) 3,379
Current taxes payable ............................................... 1,370 661
Other noncurrent assets and liabilities ............................. 2,640 (630)
-------- --------
Net cash provided by (used in) operating activities .................... 8,776 (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 ......................................................... (1,920) (1,763)
-------- --------
Net cash used in financing activities .................................. (8,008) (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
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