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 | ||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20211021005213/en/
Contacts:
Brian Ketcham
Senior Vice President & Chief Financial Officer
402-827-6579
