Lindsay Corporation Reports Fiscal 2022 Fourth Quarter and Full Year Results

Rhea-AI Summary

Lindsay Corporation (NYSE: LNN) reported a significant increase in earnings and revenues for the fourth quarter and full fiscal year ending August 31, 2022. Fourth quarter revenues reached $190.2 million, a 24% year-over-year increase, with net earnings of $17.9 million ($1.62 per share), up from $5.8 million in the previous year. For the full year, total revenues hit an all-time high of $770.7 million, a 36% increase, with net earnings of $65.5 million ($5.94 per share). Demand for irrigation equipment, especially in North America, was strong, driven by storm damage replacement sales.

Positive

• Fourth quarter revenues increased 24% year-over-year to $190.2 million.
• Net earnings for Q4 tripled to $17.9 million with EPS of $1.62.
• Full year revenues reached an all-time high of $770.7 million, up 36% from the previous year.
• Operating income for irrigation segment increased by 129% to $24.2 million in Q4.
• Infrastructure segment revenues grew 40% to $39.7 million in Q4.

Negative

• International irrigation revenues decreased by 2% to $70.4 million due to adverse foreign currency effects.
• Backlog of unfilled orders decreased to $96.8 million from $149.1 million year-over-year.

• Fourth quarter consolidated earnings triple to $17.9 million with EPS of $1.62
• Fourth quarter Irrigation revenues increase on strong unit volume growth in North America
• Fourth quarter Infrastructure revenues increase on improved Road Zipper System^® sales
• Full year consolidated results reach all-time highs of $770.7 million in revenues and EPS of $5.94

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, 2022.

Fourth Quarter and Full Year Summary

Revenues for the fourth quarter of fiscal 2022 were $190.2 million, an increase of $36.5 million, or 24 percent, compared to revenues of $153.6 million in the prior year fourth quarter. Net earnings for the quarter were $17.9 million, or $1.62 per diluted share, compared with net earnings of $5.8 million, or $0.53 per diluted share, for the prior year fourth quarter.

Revenues for the year ended August 31, 2022 were $770.7 million, an increase of $203.1 million, or 36 percent, compared to revenues of $567.6 million in the prior year. Net earnings for the year were $65.5 million, or $5.94 per diluted share, compared with net earnings of $42.6 million, or $3.88 per diluted share, for the prior year.

“Demand for irrigation equipment remained strong across all geographies in our fourth quarter, particularly in North America where damage to existing systems due to severe weather in the Midwest resulted in a large increase in replacement sales. In the infrastructure business, fourth quarter revenue growth was driven by an increase in Road Zipper sales as we began delivery of a large project we had been expecting in the second half of our fiscal year,” said Randy Wood, President and Chief Executive Officer. “For the full year, strong growth in our irrigation business led to record consolidated revenues of $770.7 million. We were also pleased that, through effective price management and improved operating performance, we were able to overcome the inflationary headwinds we faced earlier in the year to deliver results that met our annual operating margin objective of 12 percent.”

Fourth Quarter Segment Results

Irrigation segment revenues for the fourth quarter of fiscal 2022 were $150.5 million, an increase of $25.2 million, or 20 percent, compared to $125.3 million in the prior year fourth quarter. North America irrigation revenues of $80.1 million increased $26.5 million, or 50 percent, compared to the prior year fourth quarter. The increase in North America irrigation revenues resulted from higher unit sales volumes and higher average selling prices. Higher unit sales volumes resulted primarily from increased storm damage replacement demand compared to the prior year fourth quarter. International irrigation revenues of $70.4 million decreased $1.3 million, or 2 percent, including unfavorable effects of foreign currency translation of approximately $3.5 million compared to the prior year fourth quarter. Strong sales growth in Brazil, Europe and other markets more than offset the impact of a large project in Egypt in the prior year that did not repeat.

Irrigation segment operating income for the fourth quarter of fiscal 2022 was $24.2 million, an increase of $13.6 million, or 129 percent, compared to the prior year fourth quarter. Operating margin was 16.1 percent of sales, compared to 8.4 percent of sales in the prior year fourth quarter. Increased operating income and margin resulted from higher unit sales volumes, improved price realization and lower inflationary headwinds compared to the prior year fourth quarter.

Infrastructure segment revenues for the fourth quarter of fiscal 2022 were $39.7 million, an increase of $11.3 million, or 40 percent, compared to $28.4 million in the prior year fourth quarter. The increase resulted from higher Road Zipper System project sales, which were partially offset by lower Road Zipper System lease revenue.

Infrastructure segment operating income for the fourth quarter of fiscal 2022 was $11.5 million, an increase of $5.7 million or 97 percent compared to the prior year fourth quarter. Operating margin was 28.8 percent of sales, compared to 20.5 percent of sales in the prior year fourth quarter, which is largely due to the increase in Road Zipper System sales.

The backlog of unfilled orders at August 31, 2022 was $96.8 million compared with $149.1 million at August 31, 2021. The irrigation backlog is lower compared to the prior year while the infrastructure backlog is higher.

Outlook

“Current commodity prices and net farm income projections support a positive outlook for North America irrigation equipment demand for the fall selling season, however the ongoing impacts from inflation and supply chain challenges can also impact capital investment decisions for farmers. We expect growth in international markets through expanded production driven by positive agricultural market fundamentals and continuing concerns over food security and global grain supplies,” said Mr. Wood. “In the infrastructure business, we expect to continue delivery of the large Road Zipper System project during the first quarter of fiscal 2023, and expectations for continued growth in this business are supported by an anticipated increase in U.S. infrastructure spending and by the ongoing management of our project sales funnel.”

Fourth Quarter Conference Call

Lindsay’s fiscal 2022 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)			2022					2021					2022					2021
Operating revenues		$		190,196			$		153,648			$		770,743			$		567,646
Cost of operating revenues				133,079					120,081					571,565					417,441
Gross profit				57,117					33,567					199,178					150,205
Operating expenses:
Selling expense				9,850					8,136					33,920					30,816
General and administrative expense				14,922					12,153					55,470					51,923
Engineering and research expense				4,563					3,855					15,145					13,359
Total operating expenses				29,335					24,144					104,535					96,098
Operating income				27,782					9,423					94,643					54,107
Other (expense) income:
Interest expense				(924	)				(1,167	)				(4,269	)				(4,751	)
Interest income				166					285					622					1,083
Other expense, net				(3,392	)				(752	)				(3,128	)				(53	)
Total other (expense) income				(4,150	)				(1,634	)				(6,775	)				(3,721	)
Earnings before income taxes				23,632					7,789					87,868					50,386
Income tax expense				5,703					1,985					22,399					7,814
Net earnings		$		17,929			$		5,804			$		65,469			$		42,572
Earnings per share:
Basic		$		1.63			$		0.53			$		5.97			$		3.91
Diluted		$		1.62			$		0.53			$		5.94			$		3.88
Shares used in computing earnings per share:
Basic				10,980					10,907					10,965					10,886
Diluted				11,063					11,039					11,031					10,985
Cash dividends declared per share		$		0.34			$		0.33			$		1.33			$		1.30

LINDSAY CORPORATION AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Unaudited)
		Three months ended										Twelve months ended
(in thousands)		August 31, 2022					August 31, 2021					August 31, 2022					August 31, 2021
Operating revenues:
Irrigation:
North America		$		80,082			$		53,539			$		355,683			$		273,871
International				70,387					71,715					310,146					197,487
Irrigation total				150,469					125,254					665,829					471,358
Infrastructure				39,727					28,394					104,914					96,288
Total operating revenues		$		190,196			$		153,648			$		770,743			$		567,646
Operating income:
Irrigation		$		24,250			$		10,578			$		105,763			$		63,181
Infrastructure				11,459					5,810					18,328					20,174
Corporate				(7,927	)				(6,965	)				(29,448	)				(29,248	)
Total operating income		$		27,782			$		9,423			$		94,643			$		54,107

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, 2022					August 31, 2021
ASSETS
Current assets:
Cash and cash equivalents		$		105,048			$		127,107
Marketable securities				11,460					19,604
Receivables, net of allowance of $4,118 and $3,422, respectively				138,200					93,609
Inventories, net				193,776					145,244
Other current assets				28,617					30,539
Total current assets				477,101					416,103
Property, plant, and equipment, net				94,472					91,997
Intangible assets, net				18,208					20,367
Goodwill				67,130					67,968
Operating lease right-of-use assets				19,181					18,281
Deferred income tax assets				9,313					8,113
Other noncurrent assets				25,248					14,356
Total assets		$		710,653			$		637,185
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$		60,036			$		45,209
Current portion of long-term debt				222					217
Other current liabilities				100,684					92,814
Total current liabilities				160,942					138,240
Pension benefits liabilities				4,892					5,754
Long-term debt				115,341					115,514
Operating lease liabilities				19,810					18,301
Deferred income tax liabilities				1,054					832
Other noncurrent liabilities				15,256					20,099
Total liabilities				317,295					298,740
Shareholders' equity:
Preferred stock				—					—
Common stock				19,063					18,991
Capital in excess of stated value				94,006					86,495
Retained earnings				579,000					528,130
Less treasury stock - at cost				(277,238	)				(277,238	)
Accumulated other comprehensive loss, net				(21,473	)				(17,933	)
Total shareholders' equity				393,358					338,445
Total liabilities and shareholders' equity		$		710,653			$		637,185

LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
		Years Ended August 31,
(in thousands)			2022					2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings		$		65,469			$		42,572
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization				20,178					19,177
Provision for uncollectible accounts receivable				903					771
Deferred income taxes				(2,063	)				1,911
Share-based compensation expense				5,458					6,186
Foreign currency transaction loss (gain)				2,274					(1,934	)
Other, net				695					(828	)
Changes in assets and liabilities:
Receivables				(47,514	)				(11,535	)
Inventories				(53,803	)				(38,158	)
Other current assets				1,220					(8,132	)
Accounts payable				13,832					17,993
Other current liabilities				186					18,433
Other noncurrent assets and liabilities				(3,787	)				(2,488	)
Net cash provided by operating activities				3,048					43,968
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment				(15,595	)				(26,511	)
Purchases of marketable securities available-for-sale				(18,468	)				(19,356	)
Proceeds from maturities of marketable securities available-for-sale				25,968					18,825
Other investing activities, net				(855	)				(577	)
Net cash used in investing activities				(8,950	)				(27,619	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options				2,894					3,965
Common stock withheld for payroll tax obligations				(1,181	)				(1,269	)
Proceeds from employee stock purchase plan				412					—
Principal payments on long-term debt				(218	)				(195	)
Dividends paid				(14,599	)				(14,166	)
Net cash used in financing activities				(12,692	)				(11,665	)
Effect of exchange rate changes on cash and cash equivalents				(3,465	)				1,020
Net change in cash and cash equivalents				(22,059	)				5,704
Cash and cash equivalents, beginning of period				127,107					121,403
Cash and cash equivalents, end of period		$		105,048			$		127,107

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221019006187/en/

LINDSAY CORPORATION:

Brian Ketcham

Senior Vice President & Chief Financial Officer

402-827-6579

THREE PART ADVISORS:

Jeff Elliott 972-423-7070

Gary Guyton 214-442-0016

Source: Lindsay Corporation

FAQ

What were Lindsay Corporation's fourth quarter earnings for fiscal 2022?

Lindsay Corporation reported fourth quarter earnings of $17.9 million, or $1.62 per diluted share.

How much did Lindsay Corporation's revenues increase in the fourth quarter?

Revenues for the fourth quarter increased by 24%, reaching $190.2 million.

What was Lindsay Corporation's earnings per share for the full fiscal year 2022?

The earnings per share for the full fiscal year 2022 was $5.94.

What factors contributed to the increase in Lindsay Corporation's irrigation revenues?

The increase in irrigation revenues was primarily driven by strong demand in North America, particularly due to storm damage replacement sales.

What is the outlook for Lindsay Corporation's irrigation equipment demand?

The outlook for irrigation equipment demand in North America remains positive due to current commodity prices and net farm income projections.