We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Lindsay Corporation | NYSE:LNN | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.92 | -0.78% | 117.05 | 118.50 | 116.61 | 118.49 | 69,745 | 22:43:20 |
Irrigation demand in North America remains stable while market activity in Brazil declines; infrastructure results deliver meaningful margin expansion
Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its second quarter ended on February 29, 2024.
Key Highlights
“Demand for irrigation equipment in North America remained stable during our second quarter and in line with our expectations, supported by grower investment from the carryover impact of solid farm profits realized last year," said Randy Wood, President and Chief Executive Officer. "In Brazil, a significant drop in commodity prices during the quarter coupled with the anticipated impact of reduced yields for the current crop has reduced grower profitability and curtailed near-term capital investment capacity. In our infrastructure business, we are pleased with the continued growth of our Road Zipper System™ leasing business, which continues to represent a greater proportion of our infrastructure segment revenues with this sales mix accretive to Lindsay's overall margin profile."
"We continue to invest in our innovation strategy, driving value creation through our advanced technology platforms. During the second quarter we successfully launched the next generation of our industry leading FieldNET™ platform that provides growers with an intuitive and easy-to-use interface with enhanced capabilities for precision irrigation management. In January, we announced plans to invest more than $50 million to expand and modernize our largest global manufacturing facility located in Lindsay, NE. This includes implementation of Industry 4.0 technologies, including data connectivity, analytics, artificial intelligence and additional automation and robotics. This investment will accelerate our ability to bring our latest innovations to market, and it aligns with our capital allocation priorities and commitment to leverage state-of-the art technology across our global operations."
Second Quarter Summary
Consolidated Financial Summary
Second Quarter
(dollars in millions, except per share amounts)
FY2024
FY2023
$ Change
% Change
Total revenues
$151.5
$166.2
($14.7)
(9%)
Operating income
$22.1
$27.3
($5.2)
(19%)
Operating margin
14.6%
16.4%
Net earnings
$18.1
$18.1
$0.0
0%
Diluted earnings per share
$1.64
$1.63
$0.01
1%
Revenues for the quarter were $151.5 million, a decrease of $14.7 million, or 9 percent, compared to revenues of $166.2 million in the prior year second quarter. The decrease resulted from lower irrigation segment revenues as infrastructure revenues were comparable to the prior year second quarter.
Operating income for the quarter was $22.1 million, a decrease of $5.2 million, or 19 percent, compared to operating income of $27.3 million in the prior year second quarter. Operating margin was 14.6 percent of sales, compared to 16.4 percent of sales in the prior year quarter. The decrease in operating income and operating margin resulted primarily from lower revenues and the resulting impact from deleverage of fixed operating expenses as gross margin was similar to the prior year second quarter.
Net earnings for the quarter were $18.1 million, or $1.64 per diluted share, compared with net earnings of $18.1 million, or $1.63 per diluted share, for the prior year second quarter. The impact of lower operating income was favorably offset by higher other income and a lower effective tax rate compared to the prior year second quarter. Other income benefited from increased interest income and favorable foreign currency translation results compared to the prior year second quarter. Income tax expense for the quarter included the realization of a one-time tax benefit of $1.1 million in Brazil.
Second Quarter Segment Results
Irrigation Segment
Second Quarter
(dollars in millions)
FY2024
FY2023
$ Change
% Change
Revenues:
North America
$82.8
$90.4
($7.6)
(8%)
International
$50.2
$57.4
($7.2)
(13%)
Total revenues
$133.0
$147.8
($14.8)
(10%)
Operating income
$25.6
$32.8
($7.2)
(22%)
Operating margin
19.3%
22.2%
Irrigation segment revenues for the quarter were $133.0 million, a decrease of $14.8 million, or 10 percent, compared to $147.8 million in the prior year second quarter. North America irrigation revenues of $82.8 million decreased $7.6 million, or 8 percent, compared to the prior year second quarter. The majority of the decrease resulted from lower sales of replacement parts, along with slightly lower average selling prices and the impact of a less favorable mix of shorter machines compared to the prior year second quarter. This decrease was partially offset by moderately higher unit sales volume compared to the prior year second quarter.
International irrigation revenues of $50.2 million decreased $7.2 million, or 13 percent, compared to the prior year second quarter. The decrease resulted primarily from lower sales volumes in Brazil and other Latin America markets compared to the prior year second quarter while the impact of small increases and decreases in other markets primarily offset one another. In Brazil, order activity declined due to a significant drop in local commodity prices during the quarter which has negatively impacted the outlook for grower profitability and available liquidity. This dynamic has also resulted in a more constrained credit environment which is limiting growers' ability to invest in irrigation equipment. The decrease in revenues was partially offset by the favorable effects of foreign currency translation of approximately $0.9 million compared to the prior year second quarter.
Irrigation segment operating income for the quarter was $25.6 million, a decrease of $7.2 million, or 22 percent, compared to the prior year second quarter. Operating margin was 19.3 percent of sales, compared to 22.2 percent of sales in the prior year second quarter. Lower operating income and operating margin resulted primarily from lower revenues and the resulting impact from deleverage of fixed operating expenses.
Infrastructure Segment
Second Quarter
(dollars in millions)
FY2024
FY2023
$ Change
% Change
Total revenues
$18.5
$18.5
$0.0
0%
Operating income
$3.5
$2.0
$1.5
74%
Operating margin
19.0%
10.9%
Infrastructure segment revenues for the quarter of $18.5 million were comparable to the prior year second quarter. An increase in Road Zipper System lease revenues was offset by lower Road Zipper System project sales and lower sales of road safety products compared to the prior year second quarter.
Infrastructure segment operating income for the quarter was $3.5 million, an increase of $1.5 million, or 74 percent, compared to the prior year second quarter. Operating margin was 19.0 percent of sales, compared to 10.9 percent of sales in the prior year second quarter. Increased operating income and operating margin resulted from a more favorable margin mix of revenues with higher Road Zipper System lease revenues compared to the prior year second quarter.
The backlog of unfilled orders as of February 29, 2024, was $94.2 million compared with $95.2 million as of February 28, 2023. Included in these backlogs are amounts of $20.3 million and $5.4 million, respectively, for orders that are not expected to be fulfilled within the subsequent twelve months.
Outlook
Mr. Wood concluded, “The USDA recently released the initial projection for 2024 U.S. net farm income which reflects a substantial decline compared to 2023 levels and was below broader market expectations. The forecasted decline, if realized, could negatively affect demand for irrigation equipment during the remainder of our fiscal 2024. We remain confident in the growth opportunity in South America end markets and Brazil in particular; however we expect current market conditions to temper demand for irrigation equipment at least in the near term."
“In our infrastructure business, we expect continued growth in our Road Zipper System lease revenues through increased construction activity supported by growth in U.S. infrastructure spending. We also continue to execute our Road Zipper System project sales pipeline, however the timing of implementation remains challenging to forecast due to the number of variables involved in executing these projects.”
Second Quarter Conference Call
Lindsay’s fiscal 2024 second 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® and FieldWise® remote irrigation management, FieldNET Advisor™ irrigation 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
Six months ended
(in thousands, except per share amounts)
February 29, 2024
February 28, 2023
February 29, 2024
February 28, 2023
Operating revenues
$
151,519
$
166,241
$
312,877
$
342,400
Cost of operating revenues
102,565
111,983
214,018
235,122
Gross profit
48,954
54,258
98,859
107,278
Operating expenses:
Selling expense
9,498
8,733
19,315
18,410
General and administrative expense
13,466
13,739
28,128
28,176
Engineering and research expense
3,892
4,521
8,244
8,829
Total operating expenses
26,856
26,993
55,687
55,415
Operating income
22,098
27,265
43,172
51,863
Other income (expense):
Interest expense
(830
)
(1,038
)
(1,707
)
(1,947
)
Interest income
1,295
490
2,363
865
Other income (expense), net
134
(984
)
(136
)
(1,043
)
Total other income (expense)
599
(1,532
)
520
(2,125
)
Earnings before income taxes
22,697
25,733
43,692
49,738
Income tax expense
4,574
7,681
10,550
13,469
Net earnings
$
18,123
$
18,052
$
33,142
$
36,269
Earnings per share:
Basic
$
1.64
$
1.64
$
3.01
$
3.30
Diluted
$
1.64
$
1.63
$
2.99
$
3.28
Shares used in computing earnings per share:
Basic
11,033
11,007
11,025
10,998
Diluted
11,074
11,063
11,067
11,068
Cash dividends declared per share
$
0.35
$
0.34
$
0.70
$
0.68
LINDSAY CORPORATION AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Unaudited)
Three months ended
Six months ended
(in thousands)
February 29, 2024
February 28, 2023
February 29, 2024
February 28, 2023
Operating revenues:
Irrigation:
North America
$
82,845
$
90,354
$
172,222
$
174,288
International
50,173
57,422
100,964
125,571
Irrigation segment
133,018
147,776
273,186
299,859
Infrastructure segment
18,501
18,465
39,691
42,541
Total operating revenues
$
151,519
$
166,241
$
312,877
$
342,400
Operating income:
Irrigation segment
$
25,649
$
32,820
$
50,956
$
61,461
Infrastructure segment
3,506
2,019
7,125
5,391
Corporate
(7,057
)
(7,574
)
(14,909
)
(14,989
)
Total operating income
$
22,098
$
27,265
$
43,172
$
51,863
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 movable 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)
February 29, 2024
February 28, 2023
August 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
133,415
$
97,675
$
160,755
Marketable securities
17,219
8,763
5,556
Receivables, net
153,624
167,007
144,774
Inventories, net
167,334
178,703
155,932
Other current assets
29,121
27,973
20,467
Total current assets
500,713
480,121
487,484
Property, plant, and equipment, net
110,691
93,838
99,681
Intangibles, net
26,277
17,329
27,719
Goodwill
84,099
67,409
83,121
Operating lease right-of-use assets
16,755
17,984
17,036
Deferred income tax assets
9,203
9,518
10,885
Other noncurrent assets
17,542
22,881
19,734
Total assets
$
765,280
$
709,080
$
745,660
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
47,903
$
52,998
$
44,278
Current portion of long-term debt
228
224
226
Other current liabilities
81,147
79,566
91,604
Total current liabilities
129,278
132,788
136,108
Pension benefits liabilities
4,234
4,733
4,382
Long-term debt
115,075
115,253
115,164
Operating lease liabilities
16,936
18,659
17,689
Deferred income tax liabilities
677
702
689
Other noncurrent liabilities
16,046
14,673
15,977
Total liabilities
282,246
286,808
290,009
Shareholders' equity:
Preferred stock
—
—
—
Common stock
19,122
19,091
19,094
Capital in excess of stated value
101,060
94,834
98,508
Retained earnings
661,715
607,784
636,297
Less treasury stock - at cost
(277,238
)
(277,238
)
(277,238
)
Accumulated other comprehensive loss, net
(21,625
)
(22,199
)
(21,010
)
Total shareholders' equity
483,034
422,272
455,651
Total liabilities and shareholders' equity
$
765,280
$
709,080
$
745,660
LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
(in thousands)
February 29, 2024
February 28, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings
$
33,142
$
36,269
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization
10,574
9,695
Provision for uncollectible accounts receivable
249
834
Deferred income taxes
1,488
(185
)
Share-based compensation expense
3,335
3,089
Unrealized foreign currency transaction (gain) loss
(94
)
878
Other, net
150
354
Changes in assets and liabilities:
Receivables
(9,349
)
(28,707
)
Inventories
(12,003
)
14,014
Other current assets
(7,009
)
1,635
Accounts payable
3,792
(6,178
)
Other current liabilities
(15,186
)
(25,553
)
Other noncurrent assets and liabilities
3,047
1,742
Net cash provided by operating activities
12,136
7,887
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment
(18,773
)
(7,222
)
Purchases of marketable securities
(15,042
)
—
Proceeds from maturities of marketable securities
3,525
2,725
Other investing activities, net
(540
)
(1,214
)
Net cash used in investing activities
(30,830
)
(5,711
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options
479
—
Dividends paid
(7,724
)
(7,485
)
Common stock withheld for payroll tax obligations
(1,575
)
(2,471
)
Other financing activities, net
229
128
Net cash used in financing activities
(8,591
)
(9,828
)
Effect of exchange rate changes on cash and cash equivalents
(55
)
279
Net change in cash and cash equivalents
(27,340
)
(7,373
)
Cash and cash equivalents, beginning of period
160,755
105,048
Cash and cash equivalents, end of period
$
133,415
$
97,675
View source version on businesswire.com: https://www.businesswire.com/news/home/20240404581249/en/
For further information: LINDSAY CORPORATION: Alicia Pfeifer Vice President, Investor Relations & Treasury 402-933-6429 Alicia.Pfeifer@lindsay.com
Alpha IR: Joe Caminiti or Stephen Poe 312-445-2870 LNN@alpha-ir.com
1 Year Lindsay Chart |
1 Month Lindsay Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions