FULL YEAR: LINDSAY'S SALES UP 15%, NET EARNINGS RISE 17%
Oct. 19, 2012
Source: Lindsay Corporation news release
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Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its fourth quarter ended August 31, 2012.
Fourth Quarter Results
Fourth quarter fiscal 2012 total revenues of $127.8 million increased 10 percent from $116.1 million in the same prior year period. Net earnings were $8.8 million or $0.68 per diluted share compared with $5.9 million or $0.46 per diluted share in the prior fiscal year's fourth quarter.
Total irrigation equipment revenues increased 18 percent to $107.9 million from $91.4 million in the prior fiscal year's fourth quarter. Domestic irrigation revenues of $56.2 million increased 18 percent, while international irrigation revenues of $51.7 million increased 19 percent. Infrastructure revenues decreased 20 percent to $19.9 million primarily due to lower sales and leases of Quick-Change Moveable Barrier (QMB) product.
Gross margin was 25.6 percent compared to 25.9 percent in the prior year's fourth quarter. Irrigation gross margins increased by approximately one percentage point primarily due to fixed cost leverage and efficiency gains over the prior year. Infrastructure margins decreased approximately six percentage points due to lower QMB sales partially offset by improved margins in road safety and diversified products.
Operating expenses were $20.1 million in the quarter compared to $20.3 million in the fourth quarter of the prior fiscal year. Current year expenses included incremental expenses of an acquired company purchased in fiscal 2011 and higher sales and marketing expenses while the prior year period included expenses associated with an ERP implementation and an adverse administrative tax ruling in a foreign business unit. Operating expenses were 15.7 percent of sales in the fourth quarter of 2012 compared with 17.5 percent of sales in the prior year period. Operating margins of 9.9 percent increased from 8.4 percent in the prior year period.
Cash and cash equivalents of $143.4 million were $35.3 million higher compared to the end of the fourth quarter last year, while debt decreased $4.3 million.
Lindsay's backlog of unshipped orders at August 31, 2012 was $57.1 million compared with $46.0 million at August 31, 2011 and $44.5 million at May 31, 2012.
Twelve Month Results
Total revenues for the year ended August 31, 2012 were $551.3 million, a 15 percent increase from $478.9 million for the prior year period. Total irrigation equipment revenues of $475.3 million increased 28 percent from a year ago, while infrastructure revenues decreased 30 percent to $76.0 million. The Company's operating income for the twelve-month period was $65.5 million compared to $56.6 million during the same prior year period. Net earnings were $43.3 million or $3.38 per diluted share, as compared to $36.8 million, or $2.90 per diluted share for the prior year period.
Fiscal 2012 operating costs included $7.2 million of expenses accrued in the Company's first fiscal quarter, or $0.37 per diluted share on an after tax basis, relating to an estimated increase in the Company's liability for
environmental remediation at its Lindsay, Nebraska facility. Comparatively, fiscal 2011 included environmental remediation expense of $1.3 million, or $0.07 per diluted share after tax.
Rick Parod, president and chief executive officer, commented, "It has been a record year for Lindsay. Irrigation sales and profits have experienced year over year increases driven by positive farmer sentiment, farm incomes and commodity prices affected by the dry weather. These same positive factors have continued into the early months of fiscal 2013."
Parod added, "Infrastructure performance in 2012 was constrained by global government spending. However, with the recent passage of a U.S. highway bill providing funding through 2014 and the progress we have made in reducing our cost structure, we expect sales growth and profit improvement in the infrastructure business in 2013. Overall the long term fundamentals of the business remain very positive, as growth drivers of population growth, expanded food production and efficient and environmentally friendly water use remain imperative."