Wednesday
June 20, 2007
Lindsay Corporation Reports
Fiscal 2007 Third Quarter, Nine Month Results
Source: PRNewswire
Third Quarter Results
Third quarter fiscal 2007 total revenues increased 24 percent to $93.1 million, compared with $75.0 million for the year-ago period. Net earnings were $7.5 million, or $0.62 per diluted share, versus $6.4 million, or $0.55 per diluted share, in the prior year's third quarter. Total irrigation equipment revenues increased 9 percent to $75.4 million from $69.0 million in the prior year's fiscal third quarter, reflecting strong economic conditions for farmers and higher irrigation equipment pricing from the year ago period. Domestic irrigation revenues increased 11 percent, while international irrigation revenues increased 6 percent. Infrastructure revenues were $17.7 million compared with $6.0 million in the prior year's fiscal third quarter, primarily due to the inclusion of Barrier Systems Inc. (BSI) and Snoline, which were acquired in the fourth quarter of fiscal 2006 and second quarter of fiscal 2007, respectively.
Gross margin improved to 26.2 percent from 22.7 percent a year ago. Irrigation gross margins were higher on favorable pricing and improvements in the European operations while infrastructure margins improved on the inclusion BSI and Snoline. The quarter's operating income was $11.5 million versus $8.4 million in the comparable fiscal 2006 quarter, driven by higher revenues and improved margins. Operating expenses increased to $12.9 million from $8.7 million, due primarily to the inclusion of BSI and Snoline and higher medical costs. Interest and other income totaled $21,000 in the quarter compared to $779,000 in the fiscal 2006 quarter due to higher interest expense in 2007 on debt related to the acquisitions of BSI and Snoline.
Rick Parod, the Company's chief executive officer, stated, "While current drought conditions have eased in much of the irrigated agricultural market in the U.S., irrigation equipment demand has remained firm. An improved pricing environment has allowed us to recover material increases while continuing to improve margins through our cost reduction initiatives. I am also pleased with the first full quarter results from Snoline."
Lindsay's order backlog at May 31, 2007 was $30.0 million compared $19.2 million at May 31, 2006. Irrigation backlog increased $1.4 million while infrastructure backlog increased $9.4 million, primarily due to inclusion of BSI and Snoline.
Nine Month Results
Total revenues for the nine months ended May 31, 2007 were $208.4 million, a 23 percent increase from $169.4 million for the prior year's nine-month period. Total irrigation equipment revenues of $164.4 million rose 8 percent from a year ago, while infrastructure revenues grew 158 percent, rising to $44.0 million. Net earnings were $11.8 million, or $0.99 per diluted share, compared with $8.6 million, or $0.74 per diluted share, for the first nine months of fiscal 2006.
Shareholders' equity at May 31, 2007 was $134.9 million, or $11.58 per outstanding common share, compared with $117.7 million, or $10.20 per outstanding common share at May 31, 2006. Cash and marketable securities at May 31, 2007 were $40.7 million, compared with $52.9 million at May 31, 2006.
Outlook
Parod added, "Lindsay has an important role to play in conserving fresh water resources and feeding a growing, worldwide population. Higher agriculture commodity prices and concern over water resources provide favorable conditions for our irrigation segment globally. In addition, we are experiencing increased enthusiasm for our unique infrastructure products internationally."
Parod concluded, "I am very pleased with the management team we have built within the Company to drive our growth strategies in irrigation, infrastructure, and in new markets through acquisitions. We are also focused on improving efficiencies in our factories to expand margins and improve working capital utilization. Our approach to creating sustainable shareholder value includes a balance of organic earnings growth opportunities, accretive acquisitions, share repurchases, and dividend payments."
Third Quarter Conference Call
Lindsay's fiscal 2007 third quarter investor conference call is scheduled for 11:00 a.m. ET today. 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, http://www.lindsay.com 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 manufactures and markets irrigation equipment including Zimmatic, Greenfield, Stettyn and Perrot center pivot, lateral move and hose reel irrigation systems and GrowSmart controls, all of which are used by farmers to increase or stabilize crop production while conserving water, energy, and labor. The Company also manufactures and markets infrastructure products including movable barriers for lane management to reduce traffic congestion and improve safety through its wholly owned subsidiaries, Barrier Systems Inc. and Snoline S.R.L. In addition, the Company produces crash cushions and specialty barriers to improve motorist and highway worker safety, large diameter steel tubing, and provides outsourced manufacturing and production services for other companies. At May 31, 2007, Lindsay had approximately 11.6 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.
For more information regarding Lindsay Corporation, see Lindsay's Web site at http://www.lindsay.com For more information on the Company's infrastructure products, visit http://www.barriersystemsinc.com and http://www.snoline.com
