EX-99.1 2 lnn-ex99_1.htm EX-99.1

| Exhibit 99.1 18135 BURKE ST. OMAHA, NE 68022 TEL: 402-829-6800 FAX: 402-829-6836

For further information, contact:

LINDSAY CORPORATION: |  | THREE PART ADVISORS:
Brian Ketcham |  | Jeff Elliott 972-423-7070
Senior Vice President & Chief Financial Officer |  | Gary Guyton 214-442-0016
402-827-6579 |  |  |

Lindsay Corporation Reports Fiscal 2022 Fourth Quarter and Full Year Results

•
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., October 20, 2022—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.

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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.

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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 |

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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.

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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,netofallowanceof$4,118and$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 |

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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 |

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