Lindsay Corporation Reports Third Quarter Fiscal 2024 Results
Infrastructure results support consolidated margin performance, partially offsetting global irrigation market softness
Key Highlights
-
Diluted earnings per share of
$1.85 compared to$1.53 in the prior year quarter -
Recognition of an income tax credit in
Brazil adds$4.8 million to net earnings -
Secured large multi-year international irrigation supply agreement valued at more than
$100 million -
Completed
$17.9 million in share repurchases during the quarter
“Market conditions in our irrigation segment continue to weigh on farmer sentiment, resulting in demand softness. In
"Earlier this month we announced that we had entered into a multi-year supply agreement to provide Zimmatic™ irrigation systems and FieldNET™ remote management and scheduling technology to a significant customer in the
"During the third quarter we also completed share repurchases totaling
Third Quarter Summary
Consolidated Financial Summary |
|
Third Quarter |
||||||
(dollars in millions, except per share amounts) |
|
FY2024 |
|
FY2023 |
|
$ Change |
|
% Change |
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
( |
|
(15%) |
Operating income |
|
|
|
|
|
( |
|
(26%) |
Operating margin |
|
14.3% |
|
16.4% |
|
|
|
|
Net earnings |
|
|
|
|
|
|
|
21% |
Diluted earnings per share |
|
|
|
|
|
|
|
21% |
Revenues for the quarter were
Operating income for the quarter was
Net earnings for the quarter were
Third Quarter Segment Results
Irrigation Segment |
|
Third Quarter |
||||||
(dollars in millions) |
|
FY2024 |
|
FY2023 |
|
$ Change |
|
% Change |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
|
(9%) |
International |
|
|
|
|
|
( |
|
(31%) |
Total revenues |
|
|
|
|
|
( |
|
(19%) |
Operating income |
|
|
|
|
|
( |
|
(36%) |
Operating margin |
|
17.0% |
|
21.6% |
|
|
|
|
Irrigation segment revenues for the quarter were
International irrigation revenues of
Irrigation segment operating income for the quarter was
Infrastructure Segment |
|
Third Quarter |
||||||
(dollars in millions) |
|
FY2024 |
|
FY2023 |
|
$ Change |
|
% Change |
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
|
|
|
|
|
11% |
Operating income |
|
|
|
|
|
|
|
76% |
Operating margin |
|
25.8% |
|
16.2% |
|
|
|
|
Infrastructure segment revenues for the quarter were
Infrastructure segment operating income for the quarter was
The backlog of unfilled orders as of
Outlook
“Supported by increased
Third Quarter Conference Call
Lindsay’s fiscal 2024 third quarter investor conference call is scheduled for
About the Company
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
|
|
|||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
|
|||||||||||||||||||
(Unaudited) |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended |
|
|
Nine months ended |
|
||||||||||||||
(in thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating revenues |
|
$ |
|
139,199 |
|
|
$ |
|
164,553 |
|
|
$ |
|
452,076 |
|
|
$ |
|
506,953 |
|
Cost of operating revenues |
|
|
|
92,702 |
|
|
|
|
111,332 |
|
|
|
|
306,720 |
|
|
|
|
346,454 |
|
Gross profit |
|
|
|
46,497 |
|
|
|
|
53,221 |
|
|
|
|
145,356 |
|
|
|
|
160,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling expense |
|
|
|
9,579 |
|
|
|
|
8,681 |
|
|
|
|
28,894 |
|
|
|
|
27,092 |
|
General and administrative expense |
|
|
|
12,695 |
|
|
|
|
13,061 |
|
|
|
|
40,823 |
|
|
|
|
41,237 |
|
Engineering and research expense |
|
|
|
4,287 |
|
|
|
|
4,522 |
|
|
|
|
12,531 |
|
|
|
|
13,350 |
|
Total operating expenses |
|
|
|
26,561 |
|
|
|
|
26,264 |
|
|
|
|
82,248 |
|
|
|
|
81,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
|
19,936 |
|
|
|
|
26,957 |
|
|
|
|
63,108 |
|
|
|
|
78,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
|
(767 |
) |
|
|
|
(948 |
) |
|
|
|
(2,474 |
) |
|
|
|
(2,895 |
) |
Interest income |
|
|
|
961 |
|
|
|
|
680 |
|
|
|
|
3,324 |
|
|
|
|
1,545 |
|
Other income (expense), net |
|
|
|
43 |
|
|
|
|
(957 |
) |
|
|
|
(93 |
) |
|
|
|
(2,000 |
) |
Total other income (expense) |
|
|
|
237 |
|
|
|
|
(1,225 |
) |
|
|
|
757 |
|
|
|
|
(3,350 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings before income taxes |
|
|
|
20,173 |
|
|
|
|
25,732 |
|
|
|
|
63,865 |
|
|
|
|
75,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax (benefit) expense |
|
|
|
(206 |
) |
|
|
|
8,851 |
|
|
|
|
10,344 |
|
|
|
|
22,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings |
|
$ |
|
20,379 |
|
|
$ |
|
16,881 |
|
|
$ |
|
53,521 |
|
|
$ |
|
53,150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
|
1.85 |
|
|
$ |
|
1.53 |
|
|
$ |
|
4.86 |
|
|
$ |
|
4.83 |
|
Diluted |
|
$ |
|
1.85 |
|
|
$ |
|
1.53 |
|
|
$ |
|
4.84 |
|
|
$ |
|
4.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shares used in computing earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
|
10,996 |
|
|
|
|
11,008 |
|
|
|
|
11,016 |
|
|
|
|
11,001 |
|
Diluted |
|
|
|
11,030 |
|
|
|
|
11,052 |
|
|
|
|
11,055 |
|
|
|
|
11,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash dividends declared per share |
|
$ |
|
0.35 |
|
|
$ |
|
0.34 |
|
|
$ |
|
1.05 |
|
|
$ |
|
1.02 |
|
|
|
|||||||||||||||||||
SUMMARY OPERATING RESULTS |
|
|||||||||||||||||||
(Unaudited) |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
|
|
Nine months ended |
|
|||||||||||||
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Irrigation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
|
68,235 |
|
|
$ |
|
75,027 |
|
|
$ |
|
240,457 |
|
|
$ |
|
249,315 |
|
International |
|
|
|
46,605 |
|
|
|
|
67,544 |
|
|
|
|
147,569 |
|
|
|
|
193,115 |
|
Irrigation segment |
|
|
|
114,840 |
|
|
|
|
142,571 |
|
|
|
|
388,026 |
|
|
|
|
442,430 |
|
Infrastructure segment |
|
|
|
24,359 |
|
|
|
|
21,982 |
|
|
|
|
64,050 |
|
|
|
|
64,523 |
|
Total operating revenues |
|
$ |
|
139,199 |
|
|
$ |
|
164,553 |
|
|
$ |
|
452,076 |
|
|
$ |
|
506,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Irrigation segment |
|
$ |
|
19,524 |
|
|
$ |
|
30,727 |
|
|
$ |
|
70,480 |
|
|
$ |
|
92,188 |
|
Infrastructure segment |
|
|
|
6,276 |
|
|
|
|
3,556 |
|
|
|
|
13,401 |
|
|
|
|
8,947 |
|
Corporate |
|
|
|
(5,864 |
) |
|
|
|
(7,326 |
) |
|
|
|
(20,773 |
) |
|
|
|
(22,315 |
) |
Total operating income |
|
$ |
|
19,936 |
|
|
$ |
|
26,957 |
|
|
$ |
|
63,108 |
|
|
$ |
|
78,820 |
|
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 and large diameter steel tubing, 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.
|
|
||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
||||||||||||||
(Unaudited) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
(in thousands) |
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
|
140,221 |
|
|
$ |
|
131,577 |
|
|
$ |
|
160,755 |
|
Marketable securities |
|
|
|
12,497 |
|
|
|
|
12,806 |
|
|
|
|
5,556 |
|
Receivables, net |
|
|
|
134,461 |
|
|
|
|
154,167 |
|
|
|
|
144,774 |
|
Inventories, net |
|
|
|
171,522 |
|
|
|
|
166,759 |
|
|
|
|
155,932 |
|
Other current assets |
|
|
|
30,017 |
|
|
|
|
25,943 |
|
|
|
|
20,467 |
|
Total current assets |
|
|
|
488,718 |
|
|
|
|
491,252 |
|
|
|
|
487,484 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Property, plant, and equipment, net |
|
|
|
111,629 |
|
|
|
|
96,992 |
|
|
|
|
99,681 |
|
Intangibles, net |
|
|
|
25,644 |
|
|
|
|
16,860 |
|
|
|
|
27,719 |
|
|
|
|
|
84,102 |
|
|
|
|
67,441 |
|
|
|
|
83,121 |
|
Operating lease right-of-use assets |
|
|
|
16,308 |
|
|
|
|
17,378 |
|
|
|
|
17,036 |
|
Deferred income tax assets |
|
|
|
13,367 |
|
|
|
|
11,518 |
|
|
|
|
10,885 |
|
Other noncurrent assets |
|
|
|
18,333 |
|
|
|
|
22,177 |
|
|
|
|
19,734 |
|
Total assets |
|
$ |
|
758,101 |
|
|
$ |
|
723,618 |
|
|
$ |
|
745,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Accounts payable |
|
$ |
|
35,062 |
|
|
$ |
|
42,207 |
|
|
$ |
|
44,278 |
|
Current portion of long-term debt |
|
|
|
229 |
|
|
|
|
225 |
|
|
|
|
226 |
|
Other current liabilities |
|
|
|
88,446 |
|
|
|
|
90,616 |
|
|
|
|
91,604 |
|
Total current liabilities |
|
|
|
123,737 |
|
|
|
|
133,048 |
|
|
|
|
136,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Pension benefits liabilities |
|
|
|
4,159 |
|
|
|
|
4,653 |
|
|
|
|
4,382 |
|
Long-term debt |
|
|
|
115,029 |
|
|
|
|
115,209 |
|
|
|
|
115,164 |
|
Operating lease liabilities |
|
|
|
16,134 |
|
|
|
|
18,119 |
|
|
|
|
17,689 |
|
Deferred income tax liabilities |
|
|
|
682 |
|
|
|
|
689 |
|
|
|
|
689 |
|
Other noncurrent liabilities |
|
|
|
18,364 |
|
|
|
|
15,104 |
|
|
|
|
15,977 |
|
Total liabilities |
|
|
|
278,105 |
|
|
|
|
286,822 |
|
|
|
|
290,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Preferred stock |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Common stock |
|
|
|
19,123 |
|
|
|
|
19,092 |
|
|
|
|
19,094 |
|
Capital in excess of stated value |
|
|
|
102,752 |
|
|
|
|
96,627 |
|
|
|
|
98,508 |
|
Retained earnings |
|
|
|
678,261 |
|
|
|
|
620,922 |
|
|
|
|
636,297 |
|
Less treasury stock - at cost |
|
|
|
(295,138 |
) |
|
|
|
(277,238 |
) |
|
|
|
(277,238 |
) |
Accumulated other comprehensive loss, net |
|
|
|
(25,002 |
) |
|
|
|
(22,607 |
) |
|
|
|
(21,010 |
) |
Total shareholders' equity |
|
|
|
479,996 |
|
|
|
|
436,796 |
|
|
|
|
455,651 |
|
Total liabilities and shareholders' equity |
|
$ |
|
758,101 |
|
|
$ |
|
723,618 |
|
|
$ |
|
745,660 |
|
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
||||||||
(Unaudited) |
|
||||||||
|
|
|
|
|
|
|
|
||
|
Nine months ended |
|
|||||||
(in thousands) |
|
|
|
|
|
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
||
Net earnings |
$ |
|
53,521 |
|
|
$ |
|
53,150 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
|
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
15,847 |
|
|
|
|
14,466 |
|
Provision for uncollectible accounts receivable |
|
|
321 |
|
|
|
|
985 |
|
Deferred income taxes |
|
|
(2,504 |
) |
|
|
|
(1,548 |
) |
Share-based compensation expense |
|
|
4,887 |
|
|
|
|
4,775 |
|
Unrealized foreign currency transaction loss |
|
|
58 |
|
|
|
|
2,045 |
|
Other, net |
|
|
237 |
|
|
|
|
574 |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
||
Receivables |
|
|
8,107 |
|
|
|
|
(15,842 |
) |
Inventories |
|
|
(17,118 |
) |
|
|
|
25,289 |
|
Other current assets |
|
|
(9,768 |
) |
|
|
|
4,401 |
|
Accounts payable |
|
|
(8,592 |
) |
|
|
|
(17,953 |
) |
Other current liabilities |
|
|
(5,539 |
) |
|
|
|
(11,865 |
) |
Other noncurrent assets and liabilities |
|
|
3,193 |
|
|
|
|
691 |
|
Net cash provided by operating activities |
|
|
42,650 |
|
|
|
|
59,168 |
|
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
||
Purchases of property, plant, and equipment |
|
|
(23,527 |
) |
|
|
|
(13,283 |
) |
Purchases of marketable securities |
|
|
(15,042 |
) |
|
|
|
(4,932 |
) |
Proceeds from maturities of marketable securities |
|
|
8,320 |
|
|
|
|
3,675 |
|
Other investing activities, net |
|
|
(2,140 |
) |
|
|
|
(4,399 |
) |
Net cash used in investing activities |
|
|
(32,389 |
) |
|
|
|
(18,939 |
) |
|
|
|
|
|
|
|
|
||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
||
Repurchase of common stock |
|
|
(17,900 |
) |
|
|
|
— |
|
Dividends paid |
|
|
(11,557 |
) |
|
|
|
(11,228 |
) |
Common stock withheld for payroll tax obligations |
|
|
(1,575 |
) |
|
|
|
(2,471 |
) |
Proceeds from exercise of stock options |
|
|
479 |
|
|
|
|
— |
|
Other financing activities, net |
|
|
313 |
|
|
|
|
180 |
|
Net cash used in financing activities |
|
|
(30,240 |
) |
|
|
|
(13,519 |
) |
|
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash and cash equivalents |
|
|
(555 |
) |
|
|
|
(181 |
) |
Net change in cash and cash equivalents |
|
|
(20,534 |
) |
|
|
|
26,529 |
|
Cash and cash equivalents, beginning of period |
|
|
160,755 |
|
|
|
|
105,048 |
|
Cash and cash equivalents, end of period |
$ |
|
140,221 |
|
|
$ |
|
131,577 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240627357040/en/
Vice President, Investor Relations &
402-933-6429
Alicia.Pfeifer@lindsay.com
Alpha IR:
312-445-2870
LNN@alpha-ir.com
Source: