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): June 27, 2024 |
Lindsay Corporation
(Exact name of Registrant as Specified in Its Charter)
Delaware |
1-13419 |
47-0554096 |
||
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
18135 Burke Street Suite 100 |
|
|||
Omaha, Nebraska |
|
68022 |
||
(Address of Principal Executive Offices) |
|
(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (402) 829-6800 |
|
(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:
|
|
Trading |
|
|
Common Stock, $1.00 par value |
|
LNN |
|
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 June 27, 2024, Lindsay Corporation (the “Company”) issued a press release announcing the Company’s results of operations for its third quarter ended May 31, 2024. 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 2024 third quarter investor conference call at 11:00 a.m. Eastern Time on June 27, 2024 is furnished herewith as Exhibit 99.2.
Item 9.01 Financial Statements and Exhibits.
99.1 Earnings Press Release, dated June 27, 2024, issued by the Company.
99.2 Slide Presentation for Fiscal 2024 Third Quarter Investor Conference Call on June 27, 2024.
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 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.
|
|
|
LINDSAY CORPORATION |
|
|
|
|
Date: |
June 27, 2024 |
By: |
/s/ Brian L. Ketcham |
|
|
|
Brian L. Ketcham, Senior Vice President and Chief Financial Officer |
q
|
Exhibit 99.1
18135 BURKE ST. OMAHA, NE 68022 TEL: 402-829-6800 FAX: 402-829-6836 |
Lindsay Corporation Reports Third Quarter Fiscal 2024 Results
Infrastructure results support consolidated margin performance, partially offsetting global irrigation market softness
OMAHA, Neb., June 27, 2024—Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its third quarter ended on May 31, 2024.
Key Highlights
“Market conditions in our irrigation segment continue to weigh on farmer sentiment, resulting in demand softness. In North America, high precipitation levels and wet field conditions across the Midwest contributed to lower sales of irrigation equipment and replacement parts during our third quarter," said Randy Wood, President and Chief Executive Officer. "In Brazil, the market continues to be tempered by lower commodity prices and tight credit availability. We remain encouraged by the growing strength and momentum in our infrastructure business, supported by new project sales and momentum in leasing revenues of our Road Zipper System™. The growth and margin expansion we achieved in our infrastructure business for the quarter helped to offset some of the softness in the irrigation business."
"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 Middle East and North Africa (MENA) region. The project, valued at more than $100 million, is the largest in Lindsay's history and further demonstrates our ability to execute large-scale and complex projects that address the critical needs of our customers. The execution of this project will help to enhance the customer's ability to increase food production, conserve scarce water resources and improve quality of life. Notably, the attributes of this key project are reflective of the growth opportunities presented in international markets, where secular global trends align with Lindsay's ability to help customers optimize resources while creating sustained value through our leading combination of irrigation hardware and precision technology platforms."
"During the third quarter we also completed share repurchases totaling $17.9 million, which aligns with our capital allocation priorities to utilize our strong balance sheet to enhance shareholder value. Additionally, this further demonstrates our ability to both invest in value creation opportunities, including the $50 million investment in Lindsay, Nebraska announced earlier this year, while also returning cash to shareholders at opportune times."
Third Quarter Summary
Consolidated Financial Summary |
|
Third Quarter |
||||||
(dollars in millions, except per share amounts) |
|
FY2024 |
|
FY2023 |
|
$ Change |
|
% Change |
|
|
|
|
|
|
|
|
|
Total revenues |
|
$139.2 |
|
$164.6 |
|
($25.4) |
|
(15%) |
Operating income |
|
$19.9 |
|
$27.0 |
|
($7.0) |
|
(26%) |
Operating margin |
|
14.3% |
|
16.4% |
|
|
|
|
Net earnings |
|
$20.4 |
|
$16.9 |
|
$3.5 |
|
21% |
Diluted earnings per share |
|
$1.85 |
|
$1.53 |
|
$0.32 |
|
21% |
Revenues for the quarter were $139.2 million, a decrease of $25.4 million, or 15 percent, compared to revenues of $164.6 million in the prior year third quarter. An increase in infrastructure segment revenues was more than offset by lower irrigation segment revenues compared to the prior year third quarter.
Operating income for the quarter was $19.9 million, a decrease of $7.0 million, or 26 percent, compared to operating income of $27.0 million in the prior year third quarter. Operating margin was 14.3 percent of sales, compared to 16.4 percent of sales in the prior year quarter. The decrease in operating income and margin resulted mainly from lower irrigation segment revenues and the impact from deleverage of fixed operating expenses.
1
This decrease was partially offset by improved operating income and operating margin in the infrastructure segment.
Net earnings for the quarter were $20.4 million, or $1.85 per diluted share, compared with net earnings of $16.9 million, or $1.53 per diluted share, for the prior year third quarter. The impact of lower operating income was favorably offset by higher other income, driven by increased interest income and favorable foreign currency translation results compared to the prior year third quarter, along with the recognition of an income tax credit in Brazil of $4.8 million, or $0.44 per diluted share.
Third Quarter Segment Results
Irrigation Segment |
|
Third Quarter |
||||||
(dollars in millions) |
|
FY2024 |
|
FY2023 |
|
$ Change |
|
% Change |
Revenues: |
|
|
|
|
|
|
|
|
North America |
|
$68.2 |
|
$75.0 |
|
($6.8) |
|
(9%) |
International |
|
$46.6 |
|
$67.5 |
|
($20.9) |
|
(31%) |
Total revenues |
|
$114.8 |
|
$142.6 |
|
($27.7) |
|
(19%) |
Operating income |
|
$19.5 |
|
$30.7 |
|
($11.2) |
|
(36%) |
Operating margin |
|
17.0% |
|
21.6% |
|
|
|
|
Irrigation segment revenues for the quarter were $114.8 million, a decrease of $27.7 million, or 19 percent, compared to $142.6 million in the prior year third quarter. North America irrigation revenues of $68.2 million decreased $6.8 million, or 9 percent, compared to the prior year third quarter. The decrease resulted from a combination of lower unit sales volume of irrigation equipment, lower sales of replacement parts and slightly lower average selling prices compared to the prior year third quarter.
International irrigation revenues of $46.6 million decreased $20.9 million, or 31 percent, compared to the prior year third quarter. The decrease resulted primarily from lower sales volumes in Brazil and other Latin America markets compared to the prior year third quarter while demand in other markets remained stable. In Brazil, order activity remains constrained due to the impact lower commodity prices have on grower profitability and available liquidity, which is reducing growers' ability to invest in irrigation equipment in the near term. The decrease in revenues was partially offset by the favorable effects of foreign currency translation of approximately $0.7 million compared to the prior year third quarter.
Irrigation segment operating income for the quarter was $19.5 million, a decrease of $11.2 million, or 36 percent, compared to the prior year third quarter. Operating margin was 17.0 percent of sales, compared to 21.6 percent of sales in the prior year third quarter. Lower operating income and margin resulted mainly from lower revenues and the impact from deleverage of fixed operating expenses.
Infrastructure Segment |
|
Third Quarter |
||||||
(dollars in millions) |
|
FY2024 |
|
FY2023 |
|
$ Change |
|
% Change |
|
|
|
|
|
|
|
|
|
Total revenues |
|
$24.4 |
|
$22.0 |
|
$2.4 |
|
11% |
Operating income |
|
$6.3 |
|
$3.6 |
|
$2.7 |
|
76% |
Operating margin |
|
25.8% |
|
16.2% |
|
|
|
|
Infrastructure segment revenues for the quarter were $24.4 million, an increase of $2.4 million, or 11 percent, compared to $22.0 million in the prior year third quarter. The increase resulted from higher Road Zipper System sales and higher lease revenues compared to the prior year third quarter. The impact of higher sales of road safety products in the U.S. was offset by lower sales in international markets compared to the prior year third quarter.
Infrastructure segment operating income for the quarter was $6.3 million, an increase of $2.7 million, or 76 percent, compared to the prior year third quarter. Operating margin was 25.8 percent of sales, compared to 16.2 percent of sales in the prior year third quarter. Increased operating income and operating margin resulted from higher revenues and a more favorable margin mix of revenues with higher Road Zipper System sales and lease revenues compared to the prior year third quarter.
The backlog of unfilled orders as of May 31, 2024, was $246.9 million compared with $94.5 million as of May 31, 2023. Included in these backlogs are amounts of $62.0 million and $5.2 million, respectively, for orders that are not expected to be fulfilled within the subsequent twelve months. The backlog in both segments was higher compared to the prior year, with the increase in irrigation backlog resulting from the addition of the large project in the MENA region. Revenues for this project are expected to be recognized beginning in the fourth quarter of fiscal 2024 and continuing through the first quarter of fiscal 2026.
2
Outlook
Mr. Wood concluded, “We are now in the growing season in North America, when weather conditions will influence crop yields, production estimates and ultimately the direction of crop prices and net farm income for the year. We expect demand in North America to remain tempered until the outlook for net farm income improves. Similarly, we expect current market conditions in Brazil to temper demand for irrigation equipment in the near term, while we remain confident in the longer-term growth opportunity in that market. We expect continued growth in developing international markets driven by the ever-present need to address food security, as evidenced by the large project we secured in the MENA region."
“Supported by increased U.S. infrastructure spending, we expect continued growth in Road Zipper System lease revenues and sales of road safety products. We also remain optimistic regarding our Road Zipper System project sales pipeline; however the timing of individual project recognition remains challenging to predict.”
Third Quarter Conference Call
Lindsay’s fiscal 2024 third 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 website, www.lindsay.com. Replays of the conference call will remain on our website 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 website.
About the Company
Lindsay Corporation (NYSE: LNN) is a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology. Established in 1955, the company has been at the forefront of research and development of innovative solutions to meet the food, fuel, fiber and transportation needs of the world’s rapidly growing population. The Lindsay family of irrigation brands includes Zimmatic™ center pivot and lateral move agricultural irrigation systems, FieldNET™ and FieldWise™ remote irrigation management, FieldNET Advisor™ irrigation scheduling technology, and industrial IoT solutions. Also a global leader in the transportation industry, Lindsay Transportation Solutions manufactures equipment to improve road safety and keep traffic moving on the world’s roads, bridges and tunnels, through the Barrier Systems™, Road Zipper™ and Snoline™ brands. For more information about Lindsay Corporation, visit www.lindsay.com.
Concerning Forward-looking Statements
This release contains forward-looking statements that are subject to risks and uncertainties, and which reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. You can find a discussion of many of these risks and uncertainties in the annual, quarterly and current reports that the Company files with the Securities and Exchange Commission. Forward-looking statements include information concerning possible or assumed future results of operations and planned financing of the Company and those statements preceded by, followed by or including the words “anticipate,” “estimate,” “believe,” “intend,” "expect," "outlook," "could," "may," "should," “will,” or similar expressions. For these statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to update any forward-looking information contained in this press release.
For further information, contact:
|
|
|
|
LINDSAY CORPORATION: |
|
Alpha IR: |
|
Alicia Pfeifer |
|
Joe Caminiti or Stephen Poe |
|
Vice President, Investor Relations & Treasury |
|
312-445-2870 |
|
402-933-6429 |
|
LNN@alpha-ir.com |
|
Alicia.Pfeifer@lindsay.com |
|
|
|
3
LINDSAY CORPORATION AND SUBSIDIARIES |
|
|||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
|
|||||||||||||||||||
(Unaudited) |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended |
|
|
Nine months ended |
|
||||||||||||||
(in thousands, except per share amounts) |
|
|
May 31, |
|
|
|
May 31, |
|
|
|
May 31, |
|
|
|
May 31, |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 |
|
4
LINDSAY CORPORATION AND SUBSIDIARIES |
|
|||||||||||||||||||
SUMMARY OPERATING RESULTS |
|
|||||||||||||||||||
(Unaudited) |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended |
|
|
|
Nine months ended |
|
|||||||||||||
(in thousands) |
|
|
May 31, |
|
|
|
May 31, |
|
|
|
May 31, |
|
|
|
May 31, |
|
||||
Operating revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Irrigation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
North America |
|
$ |
|
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.
5
LINDSAY CORPORATION AND SUBSIDIARIES |
|
||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
||||||||||||||
(Unaudited) |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
(in thousands) |
|
May 31, |
|
|
May 31, |
|
|
August 31, |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
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 |
|
Goodwill |
|
|
|
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 |
|
6
LINDSAY CORPORATION AND SUBSIDIARIES |
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
||||||||
(Unaudited) |
|
||||||||
|
|
|
|
|
|
|
|
||
|
Nine months ended |
|
|||||||
(in thousands) |
|
May 31, 2024 |
|
|
|
May 31, 2023 |
|
||
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 |
|
7
3rd Quarter Fiscal 2024 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 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 additional financial statement information, please see the Company’s earnings release dated June 27, 2024.
Third Quarter Key Messages Softening agricultural market conditions continue to weigh on farmer sentiment, resulting in tempered demand in North America and Brazil Secured $100 million-plus multi-year irrigation project in a developing international region New project sales and growth in Road Zipper System™ lease revenues support consolidated margin performance Recognition of income tax credit in Brazil adds $4.8 million to net earnings Completed $17.9 million in share repurchases during the quarter
Third Quarter Summary Revenues decreased $25.4 million compared to prior year Irrigation decreased $27.7 million Infrastructure increased $2.4 million Operating income decreased $7.0 million compared to prior year Irrigation decreased $11.2 million Infrastructure increased $2.7 million Corporate expense decreased $1.4 million Diluted EPS of $1.85 includes the recognition of an income tax benefit of $0.44 $ in millions, except per share amounts -15% -26% +21% Revenue Operating Income (with operating margin) Diluted EPS
Third Quarter and YTD Financial Summary
Current Market Factors As of May 2024, U.S. corn prices have decreased 24 percent and U.S. soybean prices have decreased 7 percent from price levels prevailing in May 2023 In February 2024, the USDA estimated 2024 U.S. net farm income to be $116.1 billion, a decrease of 26 percent from 2023 U.S. net farm income of $155.9 billion Decrease in government support payments of 16 percent Decrease in cash receipts for crops of 6 percent Increase in cash expenses of 4 percent U.S. farm balance sheets remain solid following three years of solid profitability In Brazil, the market continues to be tempered by lower commodity prices and credit availability Project opportunities in developing international markets continue to be active, driven by food security concerns Irrigation Infrastructure Infrastructure Investment and Jobs Act (IIJA) funding marks the largest infusion of federal investment into infrastructure projects in more than a decade Includes $110 billion in incremental federal funding for roads, bridges, and other transportation projects The additional funding is expected to support higher demand in the U.S. for Lindsay products and solutions Annual 2023 contract awards reflected an increase of 19 percent for highways and an increase of 12 percent for bridges compared to 2022 Public capital spending for highways and bridges expected to grow approximately 13 percent in calendar 2024 The timing and scope of construction projects can be impacted by a variety of factors
Irrigation Segment – Third Quarter Summary North America revenue decreased $6.8 million Lower unit sales volume of irrigation equipment and replacement parts Slightly lower average selling prices Unit sales volume breakdown by category: Replacement 42%, Dryland 29%, Conversion 29% International revenue decreased $20.9 million Lower sales in Brazil and Latin America markets Order activity remains constrained due to the impact lower commodity prices have on farmer profitability and credit availability Demand in other markets remained relatively stable Operating income decreased $11.2 million Lower operating income and margin resulted primarily from lower irrigation revenues and the resulting impact of deleverage of fixed operating expenses Revenue North America International FY23 FY24 $ in millions -31% -36% -9% Operating Income (with operating margin)
Infrastructure Segment – Third Quarter Summary Total revenue increased $2.4 million Higher Road Zipper System ™ project sales Higher Road Zipper System ™ lease revenue Higher sales of road safety products in the U.S. were offset by lower sales in international markets Operating income increased $2.7 million Increased revenue A more favorable margin mix of revenues with higher Road Zipper System ™ project sales and lease revenue Revenue $ in millions +76% Operating Income (with operating margin) +11%
Innovation Leadership: Addressing Global Megatrends Capitalizingon globalmegatrends FoodSecurity WaterScarcity LandAvailability MobilitySafety Increased Safety Standards Aging Infrastructure Megatrends Innovation Leadership Innovative sustainable solutions for growers across the globe Mobilizing global populations safelyand sustainably
Strong Commitment to Sustainable Practices Our mission is to conserve natural resources, expand our world’s potential, and enhance the quality of life for people. 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 May 31, 2024, available liquidity of $202.7 million, with $152.7 million in cash, cash equivalents and marketable securities and $50.0 million available under revolving credit facility Well-positioned with a strong balance sheet to continue to execute our capital allocation strategy and create value for shareholders.
Free Cash Flow Summary
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 approximately $30 million in fiscal 2024 Reflects incremental investment in plant modernization & productivity improvements at certain manufacturing facilities Acquisitions that align with strategic priorities Increasing dividend payments Opportunistic share repurchases Allocation History Other includes debt repayments, net cash sources/uses from note receivables, settlement of net investment hedges, and stock compensation related activity. Ending cash includes cash equivalents and marketable securities.
Five-Year Financial Goals(Annual Averages) Organic RevenueGrowth >7% OperatingMargin >14% ROIC >12% EPS Growth >10%
Appendix
U.S. Net Farm Income and Net Cash Farm IncomeInflation adjusted, 2003-2024F 2003-22 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 2024 by USDA, Economic Research Service. Source: USDA, Economic Research Service, Farm Income and Wealth Statistics. Data as of February 7, 2024 $ billion (2022) 2003-22 average NFI
U.S. Corn Prices Source: Trading Economics
U.S. Soybean Prices Source: Trading Economics
Soybean Cash Price Index – Brazil Source:Cepea
United States Drought Condition Source: US Drought Monitor, March 2024 2023 2024