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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 20, 2022 |
Lindsay Corporation
(Exact name of Registrant as Specified in Its Charter)
Delaware |
1-13419 |
47-0554096 |
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(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
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18135 Burke Street Suite 100 |
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Omaha, Nebraska |
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68022 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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Registrant’s Telephone Number, Including Area Code: (402) 829-6800 |
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Common Stock, $1.00 par value |
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LNN |
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New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 20, 2022, Lindsay Corporation (the “Company”) issued a press release announcing the Company’s results of operations for its fourth quarter and fiscal year ended August 31, 2022. A copy of the press release is furnished herewith as Exhibit 99.1.
In addition, a copy of the slide presentation to be used during the Company’s fiscal 2022 fourth quarter and year-end investor conference call at 11:00 a.m. Eastern Time on October 20, 2022 is furnished herewith as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits.
99.1 Press Release, dated October 20, 2022, issued by the Company.
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
In accordance with General Instruction B.2 of Form 8-K, the information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 relating to Item 2.02 and attached hereto, is being “furnished” and, as such, shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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LINDSAY CORPORATION |
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Date: |
October 20, 2022 |
By: |
/s/ Brian L. Ketcham |
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Brian L. Ketcham, Senior Vice President and Chief Financial Officer |
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Exhibit 99.1
18135 BURKE ST. OMAHA, NE 68022 TEL: 402-829-6800 FAX: 402-829-6836 |
For further information, contact:
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LINDSAY CORPORATION: |
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THREE PART ADVISORS: |
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Brian Ketcham |
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Jeff Elliott 972-423-7070 |
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Senior Vice President & Chief Financial Officer |
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Gary Guyton 214-442-0016 |
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402-827-6579 |
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Lindsay Corporation Reports Fiscal 2022 Fourth Quarter and Full Year Results
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.
1
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 |
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
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(Unaudited) |
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Three Months Ended August 31, |
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Years Ended August 31, |
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(in thousands, except per share amounts) |
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2022 |
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2021 |
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2022 |
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2021 |
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Operating revenues |
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$ |
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190,196 |
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$ |
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153,648 |
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$ |
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770,743 |
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$ |
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567,646 |
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Cost of operating revenues |
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133,079 |
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120,081 |
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571,565 |
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417,441 |
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Gross profit |
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57,117 |
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33,567 |
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199,178 |
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150,205 |
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Operating expenses: |
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Selling expense |
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9,850 |
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8,136 |
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33,920 |
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30,816 |
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General and administrative expense |
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14,922 |
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12,153 |
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55,470 |
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51,923 |
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Engineering and research expense |
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4,563 |
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3,855 |
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15,145 |
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13,359 |
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Total operating expenses |
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29,335 |
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24,144 |
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104,535 |
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96,098 |
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Operating income |
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27,782 |
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9,423 |
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94,643 |
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54,107 |
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Other (expense) income: |
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Interest expense |
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(924 |
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(1,167 |
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(4,269 |
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(4,751 |
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Interest income |
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166 |
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285 |
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622 |
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1,083 |
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Other expense, net |
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(3,392 |
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(752 |
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(3,128 |
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(53 |
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Total other (expense) income |
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(4,150 |
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(1,634 |
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(6,775 |
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(3,721 |
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Earnings before income taxes |
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23,632 |
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7,789 |
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87,868 |
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50,386 |
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Income tax expense |
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5,703 |
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1,985 |
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22,399 |
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7,814 |
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Net earnings |
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$ |
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17,929 |
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$ |
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5,804 |
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$ |
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65,469 |
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$ |
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42,572 |
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Earnings per share: |
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Basic |
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$ |
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1.63 |
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$ |
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0.53 |
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$ |
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5.97 |
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$ |
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3.91 |
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Diluted |
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$ |
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1.62 |
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$ |
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0.53 |
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$ |
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5.94 |
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$ |
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3.88 |
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Shares used in computing earnings per share: |
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Basic |
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10,980 |
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10,907 |
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10,965 |
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10,886 |
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Diluted |
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11,063 |
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11,039 |
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11,031 |
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10,985 |
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Cash dividends declared per share |
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$ |
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0.34 |
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$ |
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0.33 |
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$ |
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1.33 |
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$ |
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1.30 |
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3
LINDSAY CORPORATION AND SUBSIDIARIES |
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SUMMARY OPERATING RESULTS |
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(Unaudited) |
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Three months ended |
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Twelve months ended |
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(in thousands) |
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August 31, |
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August 31, |
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August 31, |
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August 31, |
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Operating revenues: |
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Irrigation: |
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North America |
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$ |
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80,082 |
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$ |
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53,539 |
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$ |
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355,683 |
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$ |
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273,871 |
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International |
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70,387 |
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71,715 |
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310,146 |
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197,487 |
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Irrigation total |
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150,469 |
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125,254 |
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665,829 |
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471,358 |
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Infrastructure |
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39,727 |
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28,394 |
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104,914 |
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96,288 |
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Total operating revenues |
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$ |
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190,196 |
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$ |
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153,648 |
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$ |
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770,743 |
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$ |
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567,646 |
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Operating income: |
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Irrigation |
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$ |
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24,250 |
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$ |
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10,578 |
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$ |
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105,763 |
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$ |
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63,181 |
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Infrastructure |
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11,459 |
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5,810 |
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18,328 |
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20,174 |
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Corporate |
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(7,927 |
) |
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(6,965 |
) |
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(29,448 |
) |
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(29,248 |
) |
Total operating income |
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$ |
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27,782 |
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$ |
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9,423 |
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$ |
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94,643 |
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$ |
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54,107 |
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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.
4
LINDSAY CORPORATION AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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(in thousands) |
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August 31, |
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August 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
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105,048 |
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$ |
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127,107 |
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Marketable securities |
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11,460 |
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19,604 |
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Receivables,netofallowanceof$4,118and$3,422,respectively |
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138,200 |
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93,609 |
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Inventories, net |
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193,776 |
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145,244 |
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Other current assets |
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28,617 |
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30,539 |
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Total current assets |
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477,101 |
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416,103 |
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Property, plant, and equipment, net |
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94,472 |
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91,997 |
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Intangible assets, net |
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18,208 |
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20,367 |
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Goodwill |
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67,130 |
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67,968 |
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Operating lease right-of-use assets |
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19,181 |
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18,281 |
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Deferred income tax assets |
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9,313 |
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8,113 |
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Other noncurrent assets |
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25,248 |
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14,356 |
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Total assets |
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$ |
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710,653 |
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$ |
|
637,185 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
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60,036 |
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$ |
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45,209 |
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Current portion of long-term debt |
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222 |
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|
217 |
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Other current liabilities |
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100,684 |
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92,814 |
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Total current liabilities |
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160,942 |
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138,240 |
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Pension benefits liabilities |
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4,892 |
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5,754 |
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Long-term debt |
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115,341 |
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115,514 |
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Operating lease liabilities |
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19,810 |
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|
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18,301 |
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Deferred income tax liabilities |
|
|
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1,054 |
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|
|
|
832 |
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Other noncurrent liabilities |
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15,256 |
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|
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|
20,099 |
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Total liabilities |
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317,295 |
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298,740 |
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|
|
|
|
||
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 |
|
5
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 |
|
|
|
|
|
|
|
|
|
|
||
6
4th Quarter Fiscal 2022 Earnings Slide Deck Exhibit 99.2
Safe-Harbor Statement This presentation 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, financial results and planned financing. 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. Investors should understand that a number of factors (including but not limited to the lingering effects of the COVID-19 pandemic and related public health measures on plant operations, workforce availability, supply chain availability, and product demand) could cause future economic and industry conditions and the Company’s actual financial condition and results of operations to differ materially from management’s beliefs expressed in the forward-looking statements contained in this presentation. These factors include those outlined in the “Risk Factors” section of the Company’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission, and investors are urged to review these factors when considering the forward-looking statements contained in this presentation. 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. For full financial statement information, please see the Company’s earnings release dated October 20, 2022.
Fourth Quarter Summary Revenues increased $36.5 million compared to prior year Irrigation increased $25.2 million Infrastructure increased $11.3 million Operating income increased $18.3 million compared to prior year Irrigation increased $13.6 million Infrastructure increased $5.7 million Corporate expense increased $1.0 million Primarily due to higher incentive compensation and travel expense compared to the prior year Amounts in millions, except per share amounts Revenue Operating Income (with operating margin) Diluted EPS +24% +206% +195%
Fiscal 2022 Summary Revenues increased $203.1 million compared to prior year Irrigation increased $194.5 million Infrastructure increased $8.6 million Operating income increased $40.5 million compared to prior year Irrigation increased $42.5 million Infrastructure decreased $1.8 million Corporate expense increased $0.2 million Amounts in millions, except per share amounts Revenue Operating Income (with operating margin) Diluted EPS +36% +53% +75%
Fourth Quarter and YTD Financial Summary
Current Market Factors August 2022 U.S. corn prices have increased 26 percent and soybean prices have increased 16 percent from a year ago. Agricultural commodity prices remained elevated due to lower yield expectations in the U.S. for the 2022 crop season and supply disruptions resulting from the Russia/Ukraine conflict, while demand for agricultural commodities remained stable. As of September 2022, the USDA projected net farm income to be $147.7 billion, an increase of 5.2 percent from 2021. A projected increase in cash receipts has been partially offset by a decrease in government support payments and higher cash expenses. If realized, projected 2022 net farm income would be at a record highest level since 2010. Drought and water scarcity issues in the U.S. and other parts of the world support the need for efficient irrigation Inflationary pressure on raw material and other input costs is moderating. Irrigation Infrastructure The Infrastructure Investment and Jobs Act (IIJA) was signed into law on November 15, 2021 and marked the largest infusion of federal investment into infrastructure projects in more than a decade. It includes a five-year reauthorization of the Fixing America’s Surface Transportation (FAST) Act. This legislation introduced $110 billion in incremental federal funding to repair roads, bridges, and support other transformational projects, which the Company anticipates will translate into higher demand for its transportation safety products. On March 10, 2022, the first allocations of the IIJA funds were approved with the signing of the 2022 omnibus appropriations bill. Cost inflation and constraints in availability of labor resources are impacting the timing and scope of certain construction projects.
Irrigation Segment – Fourth Quarter Summary North America revenue increased $26.5 million Increase primarily from higher unit sales volume and higher average selling prices Higher unit sales volumes resulted primarily from increased storm damage replacement demand Unit sales volume breakdown by category: Replacement 69%, Conversion 17%, Dryland 14% International revenue decreased $1.3 million Unfavorable foreign currency translation impact of $3.5 million Higher unit sales volume in most international markets, primarily led by Brazil and Europe Prior year included $17.0 million from Egypt project that did not repeat Operating income increased $13.6 million Higher unit sales volume Improved price realization Lower inflationary cost pressure Revenue North America International FY21 FY22 Amounts in millions -2% +129% +50% Operating Income (with operating margin)
Infrastructure Segment – Fourth Quarter Summary Total revenue increased $11.3 million Increase in Road Zipper System® sales revenue from barrier replacement project in Massachusetts $16.0 million delivered in the quarter Expect deliveries to continue in Q1 of fiscal 2023 Lower Road Zipper lease revenue due to timing of projects Slightly lower sales of road safety products Operating income increased $5.7 million Increased Road Zipper System sales Improved margin mix of revenues Revenue Amounts in millions +40% +97% Operating Income (with operating margin)
Innovation Leadership: Addressing Global Megatrends Capitalizingon globalmegatrends Key Trends FoodSecurity WaterScarcity LandAvailability MobilitySafety ReducingEmissions Labor Savings
Strong Commitment to Sustainable Practices Our mission is to provide solutions that conserve natural resources, enhance the quality of life for people, and expand our world’s potential. Investing in sustainable technologies Improving our operational footprint Empowering and protecting our people Engaging inour local communities Operatingwithintegrity 1 2 3 4 5
Summary Balance Sheet and Liquidity As of August 31, 2022: Available liquidity of $166.5 million, with $116.5 million in cash, cash equivalents and marketable securities and $50.0 million available under revolving credit facility Total debt of $115.6 million, of which $115.7 million matures in 2030 A funded debt to EBITDA leverage ratio (as defined in our credit agreements) of 1.0 compared to a covenant limit of 3.0
Summary of Cash Flow FY21 capital expenditures include $8.5 million to exercise a purchase option for the land and buildings related to the Company’s manufacturing operation in Turkey
Capital Allocation – A Balanced Approach The Company’s prioritization for cash use: Working capital to support organic growth New product development Capital expenditures - expected to be $20-25 million in fiscal 2023 Acquisitions that align with strategic priorities Dividend payments Opportunistic share repurchases Allocation History Other includes debt repayments, net cash sources/uses from note receivables, net investment hedges, stock compensation and related tax benefits. Ending cash includes marketable securities.
Appendix
U.S. Net Farm Income and Net Cash Farm IncomeInflation adjusted, 2001-22F 2001-20 average NCFI Note: F = forecast. Values are adjusted for inflation using the U.S. Bureau of Economic Analysis Gross Domestic Product Price Index (BEA API series code: A191RG) rebased to 2022 by USDA, Economic Research Service. Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of September 1, 2022 $ billion (2022) 2001-20 average NFI
Commodity Prices Soybean Prices Source: Trading Economics Corn Prices
United States Drought Condition Source: US Drought Monitor, October 2022
