Lindsay Corporation Reports Fiscal 2020 Third Quarter Results - Business Wire

susilangs.blogspot.com

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 third quarter of fiscal 2020, which ended on May 31, 2020.

Third Quarter Summary

Revenues for the third quarter of fiscal 2020 were $123.1 million, an increase of $2.1 million, or 2 percent, compared to revenues of $121.1 million in the prior year third quarter. Net earnings for the quarter were $10.1 million, or $0.93 per diluted share, compared with net earnings of $2.9 million, or $0.27 per diluted share, for the prior year third quarter. Net earnings for the prior year third quarter adjusted to eliminate costs associated with the Foundation for Growth initiative were $5.5 million, or $0.50 per diluted share.¹

“As we navigate the coronavirus pandemic, our priority continues to be the health and safety of our employees around the world while continuing to operate our facilities and serve our customers,” said Tim Hassinger, President and Chief Executive Officer. “I am pleased with the success we have had in these areas as a result of the proactive measures we have put in place. In spite of this challenging environment, our businesses continue to perform well. During the quarter we also completed the acquisition of Net Irrigate, LLC, an agriculture IoT technology company that provides remote monitoring solutions for irrigation customers. This acquisition expands the number of irrigated acres managed under our FieldNET^® platform.”

Third Quarter Segment Results

Irrigation segment revenues for the third quarter of fiscal 2020 were $93.5 million, a decrease of $5.1 million, or 5 percent, compared to $98.6 million in the prior year. North America irrigation revenues of $60.9 million decreased $2.1 million, or 3 percent, compared to the prior year. The decrease resulted primarily from lower irrigation equipment unit volume which was partially offset by the impact of higher average selling prices. International irrigation revenues of $32.6 million decreased $3.0 million, or 9 percent. Higher sales volumes in certain regions were more than offset by unfavorable effects of foreign currency translation of approximately $3.5 million compared to the prior year and COVID-19 related shipment delays of approximately $2.0 million.

Irrigation segment operating margin was 16.1 percent of sales in the third quarter, compared to 11.2 percent of sales (11.7% percent adjusted)¹ in the prior year. Operating margin expansion resulted from improved cost and pricing performance attributed to the Foundation for Growth initiative as well as from increased margin contribution from technology products and services.

Infrastructure segment revenues for the third quarter of fiscal 2020 were $29.6 million, an increase of $7.1 million, or 32 percent, compared to $22.4 million in the prior year. The increase resulted from higher Road Zipper System^® sales and lease revenues which were partially offset by lower sales of road safety products compared to the prior year. In addition, revenues of approximately $12.0 million were impacted by COVID-19 related project delays.

Infrastructure segment operating margin was 28.9 percent of sales in the third quarter, compared to 15.8 percent of sales (16.0 percent adjusted)¹ in the prior year. Operating margin improvement resulted primarily from increased sales in higher margin product lines and from improved cost and pricing performance.

The backlog of unfilled orders at May 31, 2020 was $78.6 million compared with $52.5 million at May 31, 2019. Included in these backlogs are amounts of $4.5 million and $10.0 million, respectively, that are not expected to be fulfilled within the subsequent twelve months.

Outlook

“In North America, fourth quarter irrigation equipment demand is driven largely by storm damage replacement. The uncertainty of this demand combined with low commodity prices makes it challenging to project how the market will develop,” said Mr. Hassinger. “The demand outlook for our fiscal 2021 is dependent on a number of factors that could impact commodity prices and farm income, including current year crop results, export demand related to the U.S.-China Phase 1 trade agreement, and the level of government support payments to assist farmers. We expect continued growth in technology products and services due to the solid returns these investments provide to farmers. In international markets, we see the potential for additional demand being driven by heightened concerns regarding food security as a result of the global pandemic; however, the timing remains uncertain.”

Mr. Hassinger added, “In our infrastructure business, we expect strong fourth quarter results, driven by the Highways England project and the fulfillment of a large order in Japan. We continue to be excited about the growth opportunities we see for our Road Zipper Systems. Lastly, I would like to express my appreciation to the Lindsay employees, dealers and suppliers around the world who have gone to great lengths to promote a safe environment while continuing to serve our customers during this challenging time.”

Third Quarter Conference Call

Lindsay’s fiscal 2020 third 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.

1 Please see Reg G reconciliation of GAAP operating income, net earnings and diluted earnings per share to adjusted figures at end of document.

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 and FieldNET^® remote irrigation management and scheduling technology, as well as irrigation consulting and design 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										Nine months ended
(in thousands, except per share amounts)			May 31, 2020					May 31, 2019					May 31, 2020					May 31, 2019
Operating revenues		$		123,106			$		121,054			$		346,287			$		342,187
Cost of operating revenues				83,410					91,055					239,111					259,066
Gross profit				39,696					29,999					107,176					83,121
Operating expenses:
Selling expense				7,417					7,515					22,101					23,934
General and administrative expense				13,055					14,695					38,026					46,585
Engineering and research expense				3,396					3,314					10,303					10,547
Total operating expenses				23,868					25,524					70,430					81,066
Operating income				15,828					4,475					36,746					2,055
Interest expense				(1,197	)				(1,169	)				(3,574	)				(3,552	)
Interest income				408					525					1,412					1,930
Other income (expense), net				(2,774	)				(602	)				(4,197	)				(591	)
Earnings (loss) before income taxes				12,265					3,229					30,387					(158	)
Income tax expense (benefit)				2,171					332					6,432					(827	)
Net earnings		$		10,094			$		2,897			$		23,955			$		669
Earnings per share:
Basic		$		0.93			$		0.27			$		2.21			$		0.06
Diluted		$		0.93			$		0.27			$		2.21			$		0.06
Shares used in computing earnings per share:
Basic				10,835					10,786					10,818					10,779
Diluted				10,877					10,814					10,854					10,807
Cash dividends declared per share		$		0.32			$		0.31			$		0.94			$		0.93

LINDSAY CORPORATION AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Unaudited)
		Three months ended											Nine months ended
(in thousands)			May 31, 2020					May 31, 2019					May 31, 2020					May 31, 2019
Operating revenues:
Irrigation:
North America		$		60,917			$		62,974					179,197			$		177,118
International				32,606					35,644					88,751					104,876
Irrigation segment				93,523					98,618			$		267,948			$		281,994
Infrastructure segment				29,583					22,436					78,339					60,193
Total operating revenues		$		123,106			$		121,054			$		346,287			$		342,187
Operating income:
Irrigation segment		$		15,014			$		11,037			$		34,385			$		26,341
Infrastructure segment				8,560					3,537					23,686					7,259
Corporate				(7,746	)				(10,099	)				(21,325	)				(31,545	)
Total operating income		$		15,828			$		4,475			$		36,746			$		2,055

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)		May 31, 2020					May 31, 2019					August 31, 2019
ASSETS
Current assets:
Cash and cash equivalents		$		102,474			$		110,839			$		127,204
Marketable securities				19,012					—					—
Receivables, net				84,931					94,584					75,551
Inventories, net				113,301					91,091					92,287
Assets held-for-sale				—					2,744					2,744
Other current assets, net				19,469					17,903					15,704
Total current assets				339,187					317,161					313,490
Property, plant, and equipment, net				72,827					70,367					68,968
Intangibles, net				24,053					25,103					24,382
Goodwill				67,635					64,454					64,387
Operating lease right-of-use assets				27,663					—					—
Deferred income tax assets				11,118					8,783					11,758
Other noncurrent assets, net				15,003					20,054					17,329
Total assets		$		557,486			$		505,922			$		500,314
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$		35,310			$		37,509			$		29,434
Current portion of long-term debt				195					208					209
Other current liabilities				71,712					49,102					52,488
Total current liabilities				107,217					86,819					82,131
Pension benefits liabilities				5,787					5,661					6,029
Long-term debt				115,723					115,885					115,846
Operating lease liabilities				26,333					—					—
Deferred income tax liabilities				835					918					872
Other noncurrent liabilities				18,633					26,245					27,227
Total liabilities				274,528					235,528					232,105
Shareholders' equity:
Preferred stock				—					—					—
Common stock				18,918					18,870					18,870
Capital in excess of stated value				76,188					70,566					71,684
Retained earnings				488,518					476,580					474,740
Less treasury stock - at cost				(277,238	)				(277,238	)				(277,238	)
Accumulated other comprehensive loss, net				(23,428	)				(18,384	)				(19,847	)
Total shareholders' equity				282,958					270,394					268,209
Total liabilities and shareholders' equity		$		557,486			$		505,922			$		500,314

LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
		Nine months ended
(in thousands)			May 31, 2020					May 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings		$		23,955			$		669
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization				14,146					10,452
Gain on sale of assets held-for-sale				(1,191	)				—
Loss on sale of business				—					301
Provision for uncollectible accounts receivable				466					(726	)
Deferred income taxes				27					(2,556	)
Share-based compensation expense				4,118					3,226
Foreign currency transaction loss				3,632					99
Other, net				1,575					(113	)
Changes in assets and liabilities:
Receivables				(11,379	)				(26,371	)
Inventories				(23,765	)				(14,467	)
Other current assets				(6,681	)				546
Accounts payable				5,385					9,072
Other current liabilities				14,485					(4,078	)
Other noncurrent assets and liabilities				(8,810	)				4,318
Net cash provided by (used in) operating activities				15,963					(19,628	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment				(12,268	)				(20,210	)
Proceeds from sale of assets held-for-sale				3,955					—
Purchases of marketable securities available-for-sale				(23,389	)				—
Proceeds from maturities of marketable securities available-for-sale				4,320					—
Proceeds from settlement of net investment hedges				1,503					2,262
Payments for settlement of net investment hedges				—					(327	)
Acquisition of business, net of cash acquired				(3,034	)				—
Other investing activities, net				—					60
Net cash used in investing activities				(28,913	)				(18,215	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options				1,545					177
Common stock withheld for payroll tax obligations				(1,111	)				(1,124	)
Principal payments on long-term debt				(174	)				(153	)
Payment of debt issuance costs				—					(115	)
Dividends paid				(10,177	)				(10,032	)
Net cash used in financing activities				(9,917	)				(11,247	)
Effect of exchange rate changes on cash and cash equivalents				(1,863	)				(858	)
Net change in cash and cash equivalents				(24,730	)				(49,948	)
Cash and cash equivalents, beginning of period				127,204					160,787
Cash and cash equivalents, end of period		$		102,474			$		110,839

LINDSAY CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)

The non-GAAP tables below disclose (a) the impact on diluted earnings per share of consulting fees, severance costs and loss from business divestitures, associated with the Company's Foundation for Growth Initiative ("FFG costs"), (b) the impact on operating income of FFG costs, and (c) the impact on segment operating income of FFG costs. Management believes adjusted net earnings, adjusted diluted earnings per share and adjusted operating income are important indicators of the Company’s business performance because they exclude items that may not be indicative of, or may be unrelated to, the Company’s underlying operating results, and provide a useful baseline for analyzing trends in the business. Non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. These adjusted financial measures should not be considered in isolation or as a substitute for reported net earnings, diluted earnings per share and operating income. These non-GAAP financial measures reflect an additional way of viewing the Company’s operations that, when viewed with the GAAP results and the following reconciliations to the corresponding GAAP financial measures, management believes provides a more complete understanding of the Company’s business.

		Three months ended								Nine months ended
(in thousands, except per share amounts)		May 31, 2019				Diluted earnings per share				May 31, 2019				Diluted earnings per share
Net earnings - reported GAAP measure		$	2,897			$	0.27			$	669			$	0.06
FFG costs - before tax			3,890			$	0.36				13,166			$	1.22
Tax effect - FFG costs			(1,336	)		$	(0.12	)			(4,025	)		$	(0.37	)
Net earnings - adjusted		$	5,450			$	0.50			$	9,809			$	0.91
Average shares outstanding - diluted							10,814								10,807
		For the three months ended May 31, 2019
Operating income reconciliation		Consolidated				Irrigation				Infrastructure				Corporate
Operating income - reported GAAP measure			4,475			$	11,037			$	3,537			$	(10,099	)
FFG costs - before tax			3,890				550				56				3,284
Adjusted operating income		$	8,365			$	11,587			$	3,593			$	(6,815	)
Operating revenues			121,054			$	98,618			$	22,436			$	—
Operating income as a percent of operating revenues			3.7	%			11.2	%			15.8	%		N/A
Adjusted operating income as a percent of operating revenues			6.9	%			11.7	%			16.0	%		N/A
		For the nine months ended May 31, 2019
Operating income reconciliation		Consolidated				Irrigation				Infrastructure				Corporate
Operating income - reported GAAP measure			2,055			$	26,341			$	7,259			$	(31,545	)
FFG costs - before tax			13,166				676				188				12,302
Adjusted operating income		$	15,221			$	27,017			$	7,447			$	(19,243	)
Operating revenues			342,187			$	281,994			$	60,193			$	—
Operating income as a percent of operating revenues			0.6	%			9.3	%			12.1	%		N/A
Adjusted operating income as a percent of operating revenues			4.4	%			9.6	%			12.4	%		N/A

 

Let's block ads! (Why?)

"wire" - Google News
July 02, 2020 at 05:45PM
https://ift.tt/2D4yfUf

Lindsay Corporation Reports Fiscal 2020 Third Quarter Results - Business Wire
"wire" - Google News
https://ift.tt/2YtvSDd
https://ift.tt/2VUOqKG

Bagikan Berita Ini