Lindsay Corporation Reports Fiscal 2021 Fourth Quarter and Full Year Results

  • Improved demand for irrigation equipment continued in the fourth quarter across all geographies
  • Fourth quarter irrigation revenues increase 63 percent to $125.3 million
  • Fourth quarter infrastructure revenues decline 45 percent compared to record results in prior year
  • Fourth quarter net earnings reduced by after-tax LIFO impact of $4.5 million, or $0.41 per diluted share

OMAHA, Neb.–(BUSINESS WIRE)–Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its fourth quarter and fiscal year, which ended on August 31, 2021.

Fourth Quarter and Full Year Summary

Revenues for the fourth quarter of fiscal 2021 were $153.6 million, an increase of $25.2 million, or 20 percent, compared to revenues of $128.4 million in the prior year fourth quarter. Net earnings for the quarter were $5.8 million, or $0.53 per diluted share, compared with net earnings of $14.7 million, or $1.35 per diluted share, for the prior year fourth quarter. Net earnings for the quarter were reduced by an after-tax LIFO impact of approximately $4.5 million, or $0.41 per diluted share.

Revenues for the year ended August 31, 2021, were $567.6 million, an increase of $93.0 million, or 20 percent, compared to revenues of $474.7 million in the prior year. Net earnings for the year were $42.6 million, or $3.88 per diluted share, compared with net earnings of $38.6 million, or $3.56 per diluted share, in the prior year.

“Fiscal 2021 was an extraordinary year in which our team demonstrated agility and resiliency in the face of the ongoing global pandemic,” said Randy Wood, President and Chief Executive Officer. “We were able to capitalize on market tailwinds in irrigation while navigating persistent headwinds created by pandemic-related project delays in our infrastructure business, significant raw material inflation, logistics challenges, and a tight labor market. We also remained highly focused on innovation, maintaining strong organizational health and safety, and increasing our commitment to sustainability initiatives.”

Fourth Quarter Segment Results

Irrigation segment revenues for the fourth quarter of fiscal 2021 were $125.3 million, an increase of $48.2 million, or 63 percent, compared to $77.0 million in the prior year fourth quarter. North America irrigation revenues of $53.5 million increased $12.3 million, or 30 percent, compared to the prior year fourth quarter. The increase in North America irrigation revenues resulted from a combination of higher irrigation equipment unit sales volume and higher average selling prices. International irrigation revenues of $71.7 million increased $35.9 million, or 100 percent, compared to the prior year fourth quarter. The increase in international irrigation revenues resulted primarily from higher unit sales volumes, along with higher selling prices and a favorable foreign currency translation impact of $2.8 million. The largest sales volume increases were in the Brazil and Middle East markets.

Irrigation segment operating income for the fourth quarter of fiscal 2021 was $10.6 million, an increase of $4.6 million, or 78 percent, compared to the prior year fourth quarter. Operating margin was 8.4 percent of sales, compared to 7.8 percent of sales in the prior year fourth quarter. The impact of higher irrigation system unit volume was partially offset by the impact of higher raw material and other costs. Fourth quarter operating results were also reduced by approximately $5.0 million resulting from the impact of the LIFO method of accounting for inventory, under which higher raw material costs are recognized in cost of goods sold rather than in ending inventory values.

Infrastructure segment revenues for the fourth quarter of fiscal 2021 were $28.4 million, a decrease of $23.0 million, or 45 percent, compared to $51.4 million in the prior year fourth quarter. The decrease resulted primarily from lower Road Zipper System® sales compared to the prior year. Road Zipper System® sales in the fourth quarter of fiscal 2020 included a large project in the United Kingdom that did not repeat in fiscal 2021. In addition, during fiscal 2021 the timing of certain projects has been impacted by coronavirus-related delays.

Infrastructure segment operating income for the fourth quarter of fiscal 2021 was $5.8 million, a decrease of $14.1 million, or 71 percent, compared to the prior year fourth quarter. Operating margin was 20.5 percent of sales, compared to 38.8 percent of sales in the prior year fourth quarter. Current year results reflect lower revenues and a less favorable margin mix of revenues compared to the prior year fourth quarter and were also reduced by approximately $1.0 million resulting from the impact of the LIFO method of accounting for inventory.

The backlog of unfilled orders at August 31, 2021 was $149.1 million compared with $58.7 million at August 31, 2020. A higher backlog of orders in irrigation was partially offset by a lower backlog in infrastructure.

Outlook

“Although agricultural commodity prices have come down from their peak earlier in the year, they remain at multi-year highs,” said Mr. Wood. “This supports a solid outlook for North America irrigation equipment demand for the fall selling season. We expect growth in international irrigation to be led by continued momentum in Brazil and other markets and from new agricultural development being driven by increased concerns regarding food security.”

Mr. Wood continued, “In our infrastructure business, we expect a slower start to fiscal 2022 due to specific project delays. However, prospects for year-over-year growth are supported by the quality of our project sales funnel.”

Fourth Quarter Conference Call

Lindsay’s fiscal 2021 fourth 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 (NYSE: LNN) is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. Established in 1955, the company has been at the forefront of research and development of innovative solutions to meet the food, fuel, fiber and transportation needs of the world’s rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic® center pivot and lateral move agricultural irrigation systems, FieldNET® remote irrigation management and scheduling technology, and industrial IoT 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, visit www.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.

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended August 31,

 

Years Ended August 31,

(in thousands, except per share amounts)

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

153,648

 

 

$

128,405

 

 

$

567,646

 

 

$

474,692

 

Cost of operating revenues

 

 

120,081

 

 

 

83,038

 

 

 

417,441

 

 

 

322,149

 

Gross profit

 

 

33,567

 

 

 

45,367

 

 

 

150,205

 

 

 

152,543

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Selling expense

 

 

8,136

 

 

 

9,343

 

 

 

30,816

 

 

 

31,444

 

General and administrative expense

 

 

12,153

 

 

 

14,921

 

 

 

51,923

 

 

 

52,947

 

Engineering and research expense

 

 

3,855

 

 

 

3,647

 

 

 

13,359

 

 

 

13,950

 

Total operating expenses

 

 

24,144

 

 

 

27,911

 

 

 

96,098

 

 

 

98,341

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

9,423

 

 

 

17,456

 

 

 

54,107

 

 

 

54,202

 

 

 

 

 

 

 

 

 

 

Other (expense) income:

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,167

)

 

 

(1,185

)

 

 

(4,751

)

 

 

(4,759

)

Interest income

 

 

285

 

 

 

544

 

 

 

1,083

 

 

 

1,956

 

Other (expense) income, net

 

 

(752

)

 

 

1,641

 

 

 

(53

)

 

 

(2,556

)

Total other (expense) income

 

 

(1,634

)

 

 

1,000

 

 

 

(3,721

)

 

 

(5,359

)

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

7,789

 

 

 

18,456

 

 

 

50,386

 

 

 

48,843

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

1,985

 

 

 

3,782

 

 

 

7,814

 

 

 

10,214

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

5,804

 

 

$

14,674

 

 

$

42,572

 

 

$

38,629

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

Basic

 

$

0.53

 

 

$

1.35

 

 

$

3.91

 

 

$

3.57

 

Diluted

 

$

0.53

 

 

$

1.35

 

 

$

3.88

 

 

$

3.56

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

 

Basic

 

 

10,907

 

 

 

10,835

 

 

 

10,886

 

 

 

10,823

 

Diluted

 

 

11,039

 

 

 

10,880

 

 

 

10,985

 

 

 

10,861

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per share

 

$

0.33

 

 

$

0.32

 

 

$

1.30

 

 

$

1.26

 

LINDSAY CORPORATION AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Twelve months ended

(in thousands)

 

August 31,

2021

 

August 31,

2020

 

August 31,

2021

 

August 31,

2020

Operating revenues:

 

 

 

 

 

 

 

 

Irrigation:

 

 

 

 

 

 

 

 

North America

 

$

53,539

 

 

$

41,201

 

 

$

273,871

 

 

$

224,771

 

International

 

 

71,715

 

 

 

35,824

 

 

 

197,487

 

 

 

124,575

 

Irrigation total

 

 

125,254

 

 

 

77,025

 

 

 

471,358

 

 

 

349,346

 

Infrastructure

 

 

28,394

 

 

 

51,380

 

 

 

96,288

 

 

 

125,346

 

Total operating revenues

 

$

153,648

 

 

$

128,405

 

 

$

567,646

 

 

$

474,692

 

 

 

 

 

 

 

 

 

 

Operating income:

 

 

 

 

 

 

 

 

Irrigation

 

$

10,578

 

 

$

5,979

 

 

$

63,181

 

 

$

41,263

 

Infrastructure

 

 

5,810

 

 

 

19,934

 

 

 

20,174

 

 

 

42,722

 

Corporate

 

 

(6,965

)

 

 

(8,457

)

 

 

(29,248

)

 

 

(29,783

)

Total operating income

 

$

9,423

 

 

$

17,456

 

 

$

54,107

 

 

$

54,202

 

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 various innovative technology solutions such as GPS positioning and guidance, variable rate irrigation, remote irrigation management and scheduling technology, irrigation consulting and design and industrial IoT solutions.

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.

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

August 31,

2021

 

August 31,

2020

 

 

 

 

 

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

127,107

 

 

$

121,403

 

Marketable securities

 

 

19,604

 

 

 

19,511

 

Receivables, net of allowance of $3,422 and $2,780, respectively

 

 

93,609

 

 

 

84,604

 

Inventories, net

 

 

145,244

 

 

 

104,792

 

Other current assets

 

 

30,539

 

 

 

17,625

 

Total current assets

 

 

416,103

 

 

 

347,935

 

 

 

 

 

 

Property, plant, and equipment, net

 

 

91,997

 

 

 

79,581

 

Intangible assets, net

 

 

20,367

 

 

 

23,477

 

Goodwill

 

 

67,968

 

 

 

68,004

 

Operating lease right-of-use assets

 

 

18,281

 

 

 

27,457

 

Deferred income tax assets

 

 

8,113

 

 

 

9,935

 

Other noncurrent assets

 

 

14,356

 

 

 

14,137

 

Total assets

 

$

637,185

 

 

$

570,526

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

45,209

 

 

$

29,554

 

Current portion of long-term debt

 

 

217

 

 

 

195

 

Other current liabilities

 

 

92,814

 

 

 

72,646

 

Total current liabilities

 

 

138,240

 

 

 

102,395

 

 

 

 

 

 

Pension benefits liabilities

 

 

5,754

 

 

 

6,374

 

Long-term debt

 

 

115,514

 

 

 

115,682

 

Operating lease liabilities

 

 

18,301

 

 

 

25,862

 

Deferred income tax liabilities

 

 

832

 

 

 

889

 

Other noncurrent liabilities

 

 

20,099

 

 

 

20,806

 

Total liabilities

 

 

298,740

 

 

 

272,008

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

18,991

 

 

 

18,918

 

Capital in excess of stated value

 

 

86,495

 

 

 

77,686

 

Retained earnings

 

 

528,130

 

 

 

499,724

 

Less treasury stock – at cost

 

 

(277,238

)

 

 

(277,238

)

Accumulated other comprehensive loss, net

 

 

(17,933

)

 

 

(20,572

)

Total shareholders’ equity

 

 

338,445

 

 

 

298,518

 

Total liabilities and shareholders’ equity

 

$

637,185

 

 

$

570,526

 

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

 

 

 

Years Ended August 31,

(in thousands)

 

2021

 

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

Net earnings

 

$

42,572

 

 

$

38,629

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

19,177

 

 

 

19,396

 

(Gain) on sale of business

 

 

(1,087

)

 

 

 

Provision for uncollectible accounts receivable

 

 

771

 

 

 

589

 

Deferred income taxes

 

 

1,911

 

 

 

1,384

 

Share-based compensation expense

 

 

6,186

 

 

 

5,616

 

Foreign currency transaction (gain) loss

 

 

(1,934

)

 

 

1,102

 

Other, net

 

 

259

 

 

 

288

 

Changes in assets and liabilities:

 

 

 

 

Receivables

 

 

(11,535

)

 

 

(9,523

)

Inventories

 

 

(38,158

)

 

 

(14,039

)

Other current assets

 

 

(8,132

)

 

 

(6,612

)

Accounts payable

 

 

17,993

 

 

 

(691

)

Other current liabilities

 

 

18,433

 

 

 

16,673

 

Other noncurrent assets and liabilities

 

 

(2,488

)

 

 

(6,778

)

Net cash provided by operating activities

 

 

43,968

 

 

 

46,034

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

Purchases of property, plant and equipment

 

 

(26,511

)

 

 

(21,445

)

Proceeds from sale of assets held-for-sale

 

 

 

 

 

3,955

 

Purchases of marketable securities available-for-sale

 

 

(19,356

)

 

 

(28,041

)

Proceeds from maturities of marketable securities available-for-sale

 

 

18,825

 

 

 

8,548

 

Acquisition of business, net of cash acquired

 

 

 

 

 

(3,034

)

Other investing activities, net

 

 

(577

)

 

 

1,503

 

Net cash used in investing activities

 

 

(27,619

)

 

 

(38,514

)

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

Proceeds from exercise of stock options

 

 

3,965

 

 

 

1,545

 

Common stock withheld for payroll tax obligations

 

 

(1,269

)

 

 

(1,111

)

Principal payments on long-term debt

 

 

(195

)

 

 

(227

)

Dividends paid

 

 

(14,166

)

 

 

(13,645

)

Net cash used in financing activities

 

 

(11,665

)

 

 

(13,438

)

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

1,020

 

 

 

117

 

Net change in cash and cash equivalents

 

 

5,704

 

 

 

(5,801

)

Cash and cash equivalents, beginning of period

 

 

121,403

 

 

 

127,204

 

Cash and cash equivalents, end of period

 

$

127,107

 

 

$

121,403

 

 

Contacts

LINDSAY CORPORATION:
Brian Ketcham

Senior Vice President & Chief Financial Officer

402-827-6579

THREE PART ADVISORS:
Hala Elsherbini

972-458-8000

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