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

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

Lindsay Corporation Reports Fiscal 2023 First Quarter Results

•
First quarter net earnings more than double to $18.2 million and EPS improves to $1.65
•
Irrigation revenues increase 4 percent on higher pricing and solid demand across core markets
•
Infrastructure revenues increase 19 percent on higher Road Zipper System® sales

OMAHA, Neb., January 5, 2023—Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its first quarter which ended on November 30, 2022.

First Quarter Summary

Revenues for the first quarter of fiscal 2023 were $176.2 million, an increase of $10.0 million, or 6 percent, compared to revenues of $166.2 million in the prior year first quarter. Net earnings for the quarter were $18.2 million, or $1.65 per diluted share, compared with net earnings of $7.9 million, or $0.72 per diluted share, for the prior year first quarter.

“Positive market fundamentals continue to support solid demand for irrigation equipment across our core markets,” said Randy Wood, President and Chief Executive Officer. "Improved price realization and reduced inflationary headwinds compared to the same prior year period contributed to operating income growth and margin expansion in our irrigation business. In our infrastructure business, increased Road Zipper System sales resulted from the completion of a large project that began in our prior year fourth quarter."

First Quarter Segment Results

Irrigation segment revenues for the first quarter of fiscal 2023 were $152.1 million, an increase of $6.2 million, or 4 percent, compared to $145.9 million in the prior year first quarter. North America irrigation revenues of $83.9 million increased $5.0 million, or 6 percent, compared to the prior year first quarter. The increase in North America irrigation revenues resulted primarily from higher average selling prices as unit sales volume was comparable to the prior year first quarter. International irrigation revenues of $68.1 million increased $1.2 million, or 2 percent. Higher sales in Brazil and other markets more than offset the impact of lower sales in Ukraine and Russia and a large Egypt project in the prior year first quarter that did not repeat. The current year was also impacted by the unfavorable effects of foreign currency translation of approximately $1.6 million compared to the prior year first quarter.

Irrigation segment operating income for the first quarter of fiscal 2023 was $28.6 million, an increase of $11.4 million, or 66 percent, compared to the prior year first quarter. Operating margin was 18.8 percent of sales, compared to 11.8 percent of sales in the prior year first quarter. Increased operating income and operating margin resulted primarily from improved price realization, lower inflationary impact on input costs and a more favorable margin mix of international irrigation revenues compared to the prior year first quarter.

Infrastructure segment revenues for the first quarter of fiscal 2023 were $24.1 million, an increase of $3.8 million, or 19 percent, compared to $20.2 million in the prior year first quarter. The increase resulted from higher Road Zipper System sales, which were partially offset by lower Road Zipper System lease revenue and lower sales of road safety products.

Infrastructure segment operating income for the first quarter of fiscal 2023 was $3.4 million, an increase of $0.6 million or 22 percent compared to the prior year first quarter. Operating margin was 14.0 percent of sales, compared to 13.7 percent of sales in the prior year first quarter. Increased operating income and operating margin resulted primarily from higher revenues and lower inflationary impact on input costs compared to the prior year first quarter. This increase was partially offset by a less favorable margin mix of revenues compared to the prior year first quarter.

The backlog of unfilled orders at November 30, 2022 was $129.6 million compared with $154.8 million at November 30, 2021. The irrigation and infrastructure backlog are both lower compared to the prior year first quarter.

Outlook

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“Current commodity price levels and net farm income projections support a positive outlook for North America irrigation equipment demand in the near term. We expect demand in international markets to be supported by 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 growth to be supported by an anticipated increase in U.S. infrastructure spending and by the ongoing management of our project sales funnel.”

First Quarter Conference Call

Lindsay’s fiscal 2023 first 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.

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 |  |  |

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LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
|  | Three months ended |  |
(in thousands, except per share amounts) |  |  | November 30, 2022 |  |  |  | November 30, 2021 |  |
Operating revenues |  | $ |  | 176,159 |  |  | $ |  | 166,152 |  |
Cost of operating revenues |  |  |  | 123,139 |  |  |  |  | 128,714 |  |
Gross profit |  |  |  | 53,020 |  |  |  |  | 37,438 |  |
Operating expenses: |  |  |  |  |  |  |  |  |
Selling expense |  |  |  | 9,677 |  |  |  |  | 7,990 |  |
General and administrative expense |  |  |  | 14,437 |  |  |  |  | 12,880 |  |
Engineering and research expense |  |  |  | 4,308 |  |  |  |  | 3,207 |  |
Total operating expenses |  |  |  | 28,422 |  |  |  |  | 24,077 |  |
Operating income |  |  |  | 24,598 |  |  |  |  | 13,361 |  |
Other income (expense): |  |  |  |  |  |  |  |  |
Interest expense |  |  |  | (909 | ) |  |  |  | (1,163 | ) |
Interest income |  |  |  | 373 |  |  |  |  | 177 |  |
Other expense, net |  |  |  | (57 | ) |  |  |  | (2,900 | ) |
Total other income (expense) |  |  |  | (593 | ) |  |  |  | (3,886 | ) |
Earnings before income taxes |  |  |  | 24,005 |  |  |  |  | 9,475 |  |
Income tax expense |  |  |  | 5,788 |  |  |  |  | 1,574 |  |
Net earnings |  | $ |  | 18,217 |  |  | $ |  | 7,901 |  |
Earnings per share: |  |  |  |  |  |  |  |  |
Basic |  | $ |  | 1.66 |  |  | $ |  | 0.72 |  |
Diluted |  | $ |  | 1.65 |  |  | $ |  | 0.72 |  |
Shares used in computing earnings per share: |  |  |  |  |  |  |  |  |
Basic |  |  |  | 10,989 |  |  |  |  | 10,927 |  |
Diluted |  |  |  | 11,073 |  |  |  |  | 11,026 |  |
Cash dividends declared per share |  | $ |  | 0.34 |  |  | $ |  | 0.33 |  |

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LINDSAY CORPORATION AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Unaudited)
|  | Three months ended |  |
(in thousands) |  |  | November 30, 2022 |  |  |  | November 30, 2021 |  |
Operating revenues: |  |  |  |  |  |  |  |  |
Irrigation: |  |  |  |  |  |  |  |  |
North America |  | $ |  | 83,934 |  |  | $ |  | 78,976 |  |
International |  |  |  | 68,149 |  |  |  |  | 66,933 |  |
Irrigation segment |  |  |  | 152,083 |  |  |  |  | 145,909 |  |
Infrastructure segment |  |  |  | 24,076 |  |  |  |  | 20,243 |  |
Total operating revenues |  | $ |  | 176,159 |  |  | $ |  | 166,152 |  |
Operating income: |  |  |  |  |  |  |  |  |
Irrigation segment |  | $ |  | 28,641 |  |  | $ |  | 17,212 |  |
Infrastructure segment |  |  |  | 3,372 |  |  |  |  | 2,766 |  |
Corporate |  |  |  | (7,415 | ) |  |  |  | (6,617 | ) |
Total operating income |  | $ |  | 24,598 |  |  | $ |  | 13,361 |  |

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) |  | November 30, 2022 |  |  | November 30, 2021 |  |  | August 31, 2022 |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ |  | 99,168 |  |  | $ |  | 84,719 |  |  | $ |  | 105,048 |
Marketable securities |  |  |  | 11,424 |  |  |  |  | 30,195 |  |  |  |  | 11,460 |
Receivables, net |  |  |  | 157,116 |  |  |  |  | 111,959 |  |  |  |  | 138,200 |
Inventories, net |  |  |  | 188,404 |  |  |  |  | 173,115 |  |  |  |  | 193,776 |
Other current assets, net |  |  |  | 25,295 |  |  |  |  | 26,345 |  |  |  |  | 28,617 |
Total current assets |  |  |  | 481,407 |  |  |  |  | 426,333 |  |  |  |  | 477,101 |
Property, plant, and equipment, net |  |  |  | 93,518 |  |  |  |  | 91,639 |  |  |  |  | 94,472 |
Intangibles, net |  |  |  | 17,760 |  |  |  |  | 19,827 |  |  |  |  | 18,208 |
Goodwill |  |  |  | 67,295 |  |  |  |  | 67,735 |  |  |  |  | 67,130 |
Operating lease right-of-use assets |  |  |  | 18,477 |  |  |  |  | 17,584 |  |  |  |  | 19,181 |
Deferred income tax assets |  |  |  | 8,117 |  |  |  |  | 6,157 |  |  |  |  | 9,313 |
Other noncurrent assets, net |  |  |  | 21,722 |  |  |  |  | 20,170 |  |  |  |  | 25,248 |
Total assets |  | $ |  | 708,296 |  |  | $ |  | 649,445 |  |  | $ |  | 710,653 |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ |  | 58,535 |  |  | $ |  | 58,908 |  |  | $ |  | 60,036 |
Current portion of long-term debt |  |  |  | 223 |  |  |  |  | 219 |  |  |  |  | 222 |
Other current liabilities |  |  |  | 89,827 |  |  |  |  | 88,655 |  |  |  |  | 100,684 |
Total current liabilities |  |  |  | 148,585 |  |  |  |  | 147,782 |  |  |  |  | 160,942 |
Pension benefits liabilities |  |  |  | 4,812 |  |  |  |  | 5,660 |  |  |  |  | 4,892 |
Long-term debt |  |  |  | 115,297 |  |  |  |  | 115,471 |  |  |  |  | 115,341 |
Operating lease liabilities |  |  |  | 19,161 |  |  |  |  | 17,679 |  |  |  |  | 19,810 |
Deferred income tax liabilities |  |  |  | 693 |  |  |  |  | 798 |  |  |  |  | 1,054 |
Other noncurrent liabilities |  |  |  | 14,960 |  |  |  |  | 20,112 |  |  |  |  | 15,256 |
Total liabilities |  |  |  | 303,508 |  |  |  |  | 307,502 |  |  |  |  | 317,295 |
Shareholders' equity: |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  |  | — |  |  |  |  | — |  |  |  |  | — |
Common stock |  |  |  | 19,090 |  |  |  |  | 19,056 |  |  |  |  | 19,063 |
Capital in excess of stated value |  |  |  | 93,079 |  |  |  |  | 89,006 |  |  |  |  | 94,006 |
Retained earnings |  |  |  | 593,475 |  |  |  |  | 532,410 |  |  |  |  | 579,000 |
Less treasury stock - at cost |  |  |  | (277,238 | ) |  |  |  | (277,238 | ) |  |  |  | (277,238 | )
Accumulated other comprehensive loss, net |  |  |  | (23,618 | ) |  |  |  | (21,291 | ) |  |  |  | (21,473 | )
Total shareholders' equity |  |  |  | 404,788 |  |  |  |  | 341,943 |  |  |  |  | 393,358 |
Total liabilities and shareholders' equity |  | $ |  | 708,296 |  |  | $ |  | 649,445 |  |  | $ |  | 710,653 |

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LINDSAY CORPORATION AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
|  | Three months ended |
(in thousands) |  |  | November 30, 2022 |  |  |  | November 30, 2021 |
CASH FLOWS FROM OPERATING ACTIVITIES: |  |  |  |  |  |  |  |
Net earnings |  | $ |  | 18,217 |  |  | $ |  | 7,901 |
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |  |  |  |  |  |  |  |
Depreciation and amortization |  |  |  | 4,871 |  |  |  |  | 4,896 |
Provision for uncollectible accounts receivable |  |  |  | 704 |  |  |  |  | 91 |
Deferred income taxes |  |  |  | 1,129 |  |  |  |  | 1,841 |
Share-based compensation expense |  |  |  | 1,473 |  |  |  |  | 1,222 |
Unrealized foreign currency transaction (gain) loss |  |  |  | (83 | ) |  |  |  | 2,193 |
Other, net |  |  |  | 289 |  |  |  |  | 292 |
Changes in assets and liabilities: |  |  |  |  |  |  |  |
Receivables |  |  |  | (19,828 | ) |  |  |  | (17,816 | )
Inventories |  |  |  | 4,803 |  |  |  |  | (31,674 | )
Other current assets |  |  |  | 3,526 |  |  |  |  | 5,965 |
Accounts payable |  |  |  | 123 |  |  |  |  | 12,462 |
Other current liabilities |  |  |  | (11,898 | ) |  |  |  | (3,632 | )
Other noncurrent assets and liabilities |  |  |  | 1,356 |  |  |  |  | (7,920 | )
Net cash provided by (used in) operating activities |  |  |  | 4,682 |  |  |  |  | (24,179 | )
CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |  |  |  |  |  |
Purchases of property, plant, and equipment |  |  |  | (3,798 | ) |  |  |  | (3,061 | )
Purchases of marketable securities |  |  |  | — |  |  |  |  | (14,354 | )
Proceeds from maturities of marketable securities |  |  |  | — |  |  |  |  | 3,599 |
Other investing activities, net |  |  |  | (384 | ) |  |  |  | (342 | )
Net cash used in investing activities |  |  |  | (4,182 | ) |  |  |  | (14,158 | )
CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |  |  |  |  |  |
Proceeds from exercise of stock options |  |  |  | — |  |  |  |  | 2,442 |
Common stock withheld for payroll tax obligations |  |  |  | (2,471 | ) |  |  |  | (1,181 | )
Proceeds from employee stock purchase plan |  |  |  | 98 |  |  |  |  | 93 |
Principal payments on long-term debt |  |  |  | (55 | ) |  |  |  | (54 | )
Dividends paid |  |  |  | (3,742 | ) |  |  |  | (3,621 | )
Net cash used in financing activities |  |  |  | (6,170 | ) |  |  |  | (2,321 | )
Effect of exchange rate changes on cash and cash equivalents |  |  |  | (210 | ) |  |  |  | (1,730 | )
Net change in cash and cash equivalents |  |  |  | (5,880 | ) |  |  |  | (42,388 | )
Cash and cash equivalents, beginning of period |  |  |  | 105,048 |  |  |  |  | 127,107 |
Cash and cash equivalents, end of period |  | $ |  | 99,168 |  |  | $ |  | 84,719 |

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