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Lindsay(LNN) - 2022 Q3 - Quarterly Report
2022-06-30 20:13
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-13419 Lindsay Corporation (Exact name of registrant as specified in its charter) Delaware 47-0554096 (State or other jurisdiction of incorporation o ...
Lindsay(LNN) - 2022 Q3 - Earnings Call Transcript
2022-06-30 18:28
Lindsay Corporation (NYSE:LNN) Q3 2022 Earnings Conference Call June 30, 2022 11:00 AM ET Company Participants Randy Wood - President and CEO Brian Ketcham - CFO Conference Call Participants Nathan Jones - Stifel Brian Drab - William Blair Brett Kearney - Gabelli Funds John Braatz - KCCA Operator Good morning. My name is Joe, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Lindsay Corporation Third Quarter Fiscal Year 2022 Earnings Call. [Operator Inst ...
Lindsay(LNN) - 2022 Q2 - Quarterly Report
2022-04-05 20:11
Part I – FINANCIAL INFORMATION [ITEM 1 – Financial Statements](index=3&type=section&id=ITEM%201%20%E2%80%93%20Financial%20Statements) This section presents Lindsay Corporation's unaudited condensed consolidated financial statements, including earnings, balance sheets, and cash flows [Condensed Consolidated Statements of Earnings](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Condensed Consolidated Statements of Earnings | Metric | Three months ended Feb 28, 2022 ($ in thousands) | Three months ended Feb 28, 2021 ($ in thousands) | Six months ended Feb 28, 2022 ($ in thousands) | Six months ended Feb 28, 2021 ($ in thousands) | | :----------------------- | :--------------------------------------- | :--------------------------------------- | :------------------------------------ | :------------------------------------ | | Operating revenues | 200,137 | 143,577 | 366,288 | 252,062 | | Gross profit | 42,944 | 41,174 | 80,381 | 72,582 | | Operating income | 18,338 | 15,809 | 31,699 | 23,343 | | Net earnings | 14,566 | 11,876 | 22,467 | 18,971 | | Basic EPS | 1.33 | 1.09 | 2.05 | 1.75 | | Diluted EPS | 1.32 | 1.08 | 2.04 | 1.74 | | Cash dividends per share | 0.33 | 0.32 | 0.66 | 0.64 | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income | Metric | Three months ended Feb 28, 2022 ($ in thousands) | Three months ended Feb 28, 2021 ($ in thousands) | Six months ended Feb 28, 2022 ($ in thousands) | Six months ended Feb 28, 2021 ($ in thousands) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | :------------------------------------ | :------------------------------------ | | Net earnings | 14,566 | 11,876 | 22,467 | 18,971 | | Foreign currency translation adjustment, net | 1,997 | 481 | (1,353) | 1,864 | | Total comprehensive income | 16,506 | 12,391 | 21,049 | 20,881 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets | Metric | Feb 28, 2022 ($ in thousands) | Feb 28, 2021 ($ in thousands) | Aug 31, 2021 ($ in thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Total assets | 676,584 | 596,648 | 637,185 | | Total liabilities | 320,046 | 277,624 | 298,740 | | Total shareholders' equity | 356,538 | 319,024 | 338,445 | | Cash and cash equivalents | 68,951 | 110,775 | 127,107 | | Inventories, net | 187,328 | 121,566 | 145,244 | | Accounts payable | 74,345 | 39,934 | 45,209 | | Total current liabilities | 161,402 | 114,836 | 138,240 | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Condensed Consolidated Statements of Shareholders' Equity | Metric | Feb 28, 2022 ($ in thousands) | Feb 28, 2021 ($ in thousands) | Aug 31, 2021 ($ in thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Total shareholders' equity | 356,538 | 319,024 | 338,445 | | Retained earnings | 543,355 | 511,728 | 528,130 | | Common stock issued (shares) | 19,061 | 18,990 | 18,991 | | Cash dividends paid (6 months) | (7,242) | (6,967) | N/A | | Share-based compensation expense (6 months) | 2,411 | 4,047 | N/A | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows | Metric | Six months ended Feb 28, 2022 ($ in thousands) | Six months ended Feb 28, 2021 ($ in thousands) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | | Net cash (used in) provided by operating activities | (35,851) | 11,128 | | Net cash used in investing activities | (15,616) | (17,686) | | Net cash used in financing activities | (5,475) | (4,510) | | Net change in cash and cash equivalents | (58,156) | (10,628) | | Cash and cash equivalents, end of period | 68,951 | 110,775 | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details the basis of financial statement presentation, revenue recognition, income taxes, inventories, and other key accounting policies - The financial statements are prepared under SEC rules and U.S. GAAP, reflecting management's estimates; recent accounting guidance had no material impact[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) Disaggregation of Revenue by Segment | Segment | Three months ended Feb 28, 2022 ($ in thousands) | Three months ended Feb 28, 28, 2021 ($ in thousands) | Six months ended Feb 28, 2022 ($ in thousands) | Six months ended Feb 28, 2021 ($ in thousands) | | :------------------------ | :--------------------------------------- | :--------------------------------------- | :------------------------------------ | :------------------------------------ | | Irrigation Infrastructure | 180,759 | 118,572 | 326,667 | 205,929 | | Infrastructure | 19,378 | 25,005 | 39,621 | 46,133 | | Total operating revenues | 200,137 | 143,577 | 366,288 | 252,062 | - Contract liabilities significantly increased to **$39.7 million** at February 28, 2022, from **$21.3 million** in the prior year, indicating higher advance payments[28](index=28&type=chunk) Income Tax Expense and Effective Rate | Period | Income Tax Expense ($ in thousands) | Effective Income Tax Rate | | :-------------------------------- | :-------------------------------- | :------------------------ | | Three months ended Feb 28, 2022 | 4,638 | 24.2% | | Three months ended Feb 28, 2021 | 2,685 | 18.4% | | Six months ended Feb 28, 2022 | 6,213 | 25.5% | | Six months ended Feb 28, 2021 | 2,472 | 23.7% | Inventories, Net | Category | Feb 28, 2022 ($ in thousands) | Feb 28, 2021 ($ in thousands) | Aug 31, 2021 ($ in thousands) | | :-------------------------- | :---------------------------- | :---------------------------- | :---------------------------- | | Raw materials and supplies | 86,010 | 62,404 | 69,962 | | Work in process | 11,620 | 8,993 | 8,301 | | Finished goods and purchased parts, net | 96,724 | 58,682 | 75,053 | | Total inventory value before LIFO adjustment | 194,354 | 130,079 | 153,316 | | Less adjustment to LIFO value | (7,026) | (8,513) | (8,072) | | Inventories, net | 187,328 | 121,566 | 145,244 | - The Company is defending product liability lawsuits and a DOJ investigation, with potential material adverse effects despite no probable loss currently[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - Estimated aggregate accrued cost for environmental remediation at the Lindsay, Nebraska facility is **$16.1 million**, with a pilot study planned for mid-2022[45](index=45&type=chunk) Product Warranty Accrual | Metric | Three months ended Feb 28, 2022 ($ in thousands) | Three months ended Feb 28, 2021 ($ in thousands) | Six months ended Feb 28, 2022 ($ in thousands) | Six months ended Feb 28, 2021 ($ in thousands) | | :------------------------------------------ | :--------------------------------------- | :--------------------------------------- | :------------------------------------ | :------------------------------------ | | Product warranty accrual balance, beginning of period | 12,379 | 10,858 | 12,736 | 10,765 | | Liabilities accrued for warranties during the period | 1,825 | 2,247 | 4,219 | 3,981 | | Warranty claims paid during the period | (1,250) | (1,378) | (4,001) | (3,019) | | Product warranty accrual balance, end of period | 12,818 | 11,786 | 12,818 | 11,786 | - Share-based compensation expense decreased to **$2.5 million** for the six months ended February 28, 2022, from **$4.2 million** in the prior year, partly due to a one-time expense[50](index=50&type=chunk)[78](index=78&type=chunk)[88](index=88&type=chunk) - The Company operates in two reportable segments: **Irrigation** (center pivot, lateral move, hose reel systems, technology) and **Infrastructure** (moveable barriers, crash cushions, road safety equipment)[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) [ITEM 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=ITEM%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance, condition, and future outlook, including operating results and liquidity [Concerning Forward‑Looking Statements](index=17&type=section&id=Concerning%20Forward%EF%B9%A0Looking%20Statements) - The report contains forward-looking statements regarding future results and financing, protected by the Private Securities Litigation Reform Act of 1995, involving risks and uncertainties[56](index=56&type=chunk)[57](index=57&type=chunk) [COVID-19 Impact](index=17&type=section&id=COVID-19%20Impact) - COVID-19 has caused supply chain challenges, including increased lead times, limited component availability, and raw material price increases, but demand for products has not been materially affected[58](index=58&type=chunk)[59](index=59&type=chunk) [Accounting Policies](index=17&type=section&id=Accounting%20Policies) - Management's critical accounting policies, detailed in the Annual Report on Form 10-K, had no significant changes during the six months ended February 28, 2022[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk) [Executive Overview and Outlook](index=18&type=section&id=Executive%20Overview%20and%20Outlook) Consolidated Financial Highlights (3 months ended Feb 28) | Metric | Feb 28, 2022 ($ in millions) | Feb 28, 2021 ($ in millions) | Change (%) | | :---------------- | :--------------------------- | :--------------------------- | :--------- | | Operating revenues | 200.1 | 143.6 | 39% | | Net earnings | 14.6 | 11.9 | 23% | | Diluted EPS | 1.32 | 1.08 | 22.2% | - **Irrigation segment revenues increased 52%** to **$180.7 million**, while infrastructure segment revenues decreased **23%** to **$19.4 million** for the three months ended February 28, 2022, driven by strong agricultural commodity prices[64](index=64&type=chunk)[67](index=67&type=chunk) - International irrigation markets offer significant growth opportunities but are subject to regional political and economic factors, leading to the suspension of business in Russia and Belarus[68](index=68&type=chunk) - The Infrastructure Investment and Jobs Act is expected to drive higher demand for transportation safety products with **$110 billion** in incremental federal funding[69](index=69&type=chunk) Backlog of Unshipped Orders | Date | Backlog ($ in millions) | | :--------------- | :---------------------- | | Feb 28, 2022 | 111.0 | | Feb 28, 2021 | 101.4 | - Irrigation backlog is higher year-over-year, while infrastructure backlog is lower[70](index=70&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) [Three Months Ended February 28, 2022 vs. 2021](index=20&type=section&id=For%20the%20Three%20Months%20ended%20February%2028,%202022%20compared%20to%20the%20Three%20Months%20ended%20February%2028,%202021) Consolidated Performance (Three Months Ended Feb 28) | Metric | Feb 28, 2022 ($ in thousands) | Feb 28, 2021 ($ in thousands) | % Change | | :---------------------- | :---------------------------- | :---------------------------- | :------- | | Operating revenues | 200,137 | 143,577 | 39% | | Gross profit | 42,944 | 41,174 | 4% | | Gross margin | 21.5% | 28.7% | -7.2 pp | | Operating expenses | 24,606 | 25,365 | -3% | | Operating income | 18,338 | 15,809 | 16% | | Operating margin | 9.2% | 11.0% | -1.8 pp | | Other income (expense), net | 866 | (1,248) | -169% | | Net earnings | 14,566 | 11,876 | 23% | - North America irrigation revenues increased **26%** due to higher average selling prices, while international irrigation revenues more than doubled (**108% increase**) from higher selling prices and unit volumes[74](index=74&type=chunk)[75](index=75&type=chunk) - Infrastructure segment revenues decreased **23%** due to lower Road Zipper System sales and lease revenue, partially offset by increased road safety product sales[76](index=76&type=chunk) - Gross profit increased **4%**, but gross margin decreased from **28.7% to 21.5%** due to higher input costs, a **$2.8 million** LIFO impact, non-recurring factory maintenance, and a higher proportion of lower-margin irrigation revenues[77](index=77&type=chunk) - Operating expenses decreased **3%** primarily due to lower employee incentive expense, with the prior year including a **$1.5 million** one-time equity award expense[78](index=78&type=chunk) [Six Months Ended February 28, 2022 vs. 2021](index=22&type=section&id=For%20the%20Six%20Months%20ended%20February%2028,%202022%20compared%20to%20the%20Six%20Months%20ended%20February%2028,%202021) Consolidated Performance (Six Months Ended Feb 28) | Metric | Feb 28, 2022 ($ in thousands) | Feb 28, 2021 ($ in thousands) | % Change | | :---------------------- | :---------------------------- | :---------------------------- | :------- | | Operating revenues | 366,288 | 252,062 | 45% | | Gross profit | 80,381 | 72,582 | 11% | | Gross margin | 21.9% | 28.8% | -6.9 pp | | Operating expenses | 48,682 | 49,239 | -1% | | Operating income | 31,699 | 23,343 | 36% | | Operating margin | 8.7% | 9.3% | -0.6 pp | | Other expense, net | (3,019) | (1,900) | 59% | | Net earnings | 22,467 | 18,971 | 18% | - North America irrigation revenues increased **35%** from higher unit sales and prices, while international irrigation revenues increased **101%** from higher selling prices and unit volumes[84](index=84&type=chunk)[85](index=85&type=chunk) - Infrastructure segment revenues decreased **14%** due to lower Road Zipper System sales, partially offset by higher lease revenue and increased road safety product sales[86](index=86&type=chunk) - Gross profit increased **11%**, but gross margin decreased from **28.8% to 21.9%** due to higher raw material costs and an **$8.8 million** LIFO impact[87](index=87&type=chunk) - Operating expenses decreased **1%** due to lower employee incentive expenses, partially offset by increases in other areas, with the prior year including a **$1.5 million** equity award expense[88](index=88&type=chunk) - Other expense, net, increased **59%** primarily due to higher foreign currency transaction losses[89](index=89&type=chunk) - The effective income tax rate increased from **11.5% to 21.7%**, influenced by a **$0.7 million** share-based compensation benefit in the current year and a **$1.7 million** valuation allowance release in the prior year[90](index=90&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) Cash, Cash Equivalents, and Marketable Securities | Date | Amount ($ in millions) | | :--------------- | :--------------------- | | Feb 28, 2022 | 93.9 | | Feb 28, 2021 | 130.3 | | Aug 31, 2021 | 146.7 | - Net working capital increased to **$288.9 million** at February 28, 2022, from **$260.8 million** in the prior year, while cash used in operating activities totaled **$35.9 million** for the six months ended February 28, 2022, a significant change from **$11.1 million** provided in the prior year[94](index=94&type=chunk) - Cash used in investing activities decreased to **$15.6 million** from **$17.7 million**, with increased marketable securities purchases offset by lower property, plant, and equipment purchases[95](index=95&type=chunk) - Cash used in financing activities increased to **$5.5 million** from **$4.5 million**, mainly due to higher proceeds from stock option exercises[96](index=96&type=chunk) - The capital allocation plan prioritizes organic growth (capital expenditures of **$15.0-$20.0 million** for fiscal 2022), increasing dividends (**$0.33 per share** paid in Q2 FY22), synergistic acquisitions, and opportunistic share repurchases (**$63.7 million** remaining)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk) - The Company has **$115.0 million** in Senior Notes due 2030 and a **$50.0 million** unsecured Revolving Credit Facility with no outstanding borrowings, remaining in compliance with all financial loan covenants[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) [ITEM 3 – Quantitative and Qualitative Disclosures about Market Risk](index=25&type=section&id=ITEM%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section reports no material changes to the Company's market risk disclosures since its most recent Annual Report on Form 10-K - No material changes in quantitative and qualitative disclosures about market risk since the last Annual Report on Form 10-K[105](index=105&type=chunk) [ITEM 4 – Controls and Procedures](index=26&type=section&id=ITEM%204%20%E2%80%93%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no significant changes in internal control over financial reporting - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of February 28, 2022[106](index=106&type=chunk) - No significant changes in internal control over financial reporting occurred during the last fiscal quarter[107](index=107&type=chunk) Part II – OTHER INFORMATION [ITEM 1 – Legal Proceedings](index=27&type=section&id=ITEM%201%20%E2%80%93%20Legal%20Proceedings) This section refers to Note 8 – Commitments and Contingencies for details on the Company's legal proceedings and environmental remediation matters - Legal proceedings information is incorporated by reference from Note 8 – Commitments and Contingencies[108](index=108&type=chunk) [ITEM 1A – Risk Factors](index=27&type=section&id=ITEM%201A%20%E2%80%93%20Risk%20Factors) This section indicates no material changes to the risk factors previously disclosed in the Company's most recent Annual Report on Form 10-K - No material changes to risk factors since the last Annual Report on Form 10-K[109](index=109&type=chunk) [ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=ITEM%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section states that there were no unregistered sales of equity securities or use of proceeds to report for the period - No unregistered sales of equity securities and use of proceeds[110](index=110&type=chunk) [ITEM 3 – Defaults Upon Senior Securities](index=27&type=section&id=ITEM%203%20%E2%80%93%20Defaults%20Upon%20Senior%20Securities) This section reports that there were no defaults upon senior securities during the period - No defaults upon senior securities[111](index=111&type=chunk) [ITEM 4 – Mine Safety Disclosures](index=27&type=section&id=ITEM%204%20%E2%80%93%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable[112](index=112&type=chunk) [ITEM 5 – Other Information](index=27&type=section&id=ITEM%205%20%E2%80%93%20Other%20Information) This section states that there is no other information to report for the period - No other information to report[113](index=113&type=chunk) [ITEM 6 – Exhibits](index=28&type=section&id=ITEM%206%20%E2%80%93%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, certifications, and interactive data files - Exhibits include corporate governance documents, CEO and CFO certifications, and Interactive Data Files (Inline XBRL)[115](index=115&type=chunk) SIGNATURES [SIGNATURES](index=29&type=section&id=SIGNATURES) This section contains the required signatures for the Form 10-Q, certifying its submission by the Senior Vice President and Chief Financial Officer - The report was signed on April 5, 2022, by Brian L. Ketcham, Senior Vice President and Chief Financial Officer, on behalf of Lindsay Corporation[118](index=118&type=chunk)[119](index=119&type=chunk)
Lindsay(LNN) - 2022 Q2 - Earnings Call Transcript
2022-04-05 19:30
Lindsay Corporation (NYSE:LNN) Q2 2022 Earnings Conference Call April 5, 2022 11:00 AM ET CompanyParticipants Randy Wood - President, Chief Executive Officer & Chief Operating Officer Brian Ketcham - Senior Vice President & Chief Financial Officer Conference Call Participants Brian Drab - William Blair Brett Kearney - Gabelli Funds Adam Farley - Stifel Jon Braatz - Kansas City Capital Chris Shaw - Crespi Operator Good morning. My name is Sarah and I will be your conference operator today. At this time, I wo ...
Lindsay(LNN) - 2022 Q2 - Earnings Call Presentation
2022-04-05 14:31
Financial Performance - Q2 FY22 - Revenue increased to $200.1 million, a 39% increase compared to $143.6 million in Q2 FY21[4] - Operating income increased to $18.3 million, a 16% increase compared to $15.8 million in Q2 FY21[4] - Diluted EPS increased to $1.32, a 22% increase compared to $1.08 in Q2 FY21[4] - Irrigation segment revenue increased 52% to $180.7 million, compared to $118.6 million in Q2 FY21[6] - Infrastructure segment revenue decreased 23% to $19.4 million, compared to $25.0 million in Q2 FY21[6] Financial Performance - YTD FY22 - Total revenue increased 45% to $366.3 million, compared to $252.1 million YTD FY21[6] - Operating income increased 36% to $31.7 million, compared to $23.3 million YTD FY21[6] - Diluted EPS increased 18% to $2.04, compared to $1.74 YTD FY21[6] Market Factors and Trends - Corn prices increased 23% and soybean prices increased 18% year-over-year in February 2022[7] - USDA projected net farm income to be $113.7 billion, a decrease of 4.5% from 2021[8] - The Infrastructure Investment and Jobs Act (IIJA) includes $110 billion in incremental federal funding for infrastructure projects[10]
Lindsay(LNN) - 2022 Q1 - Quarterly Report
2022-01-06 21:46
Part I – FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=ITEM%201%20%E2%80%93%20Financial%20Statements) This section presents Lindsay Corporation's unaudited condensed consolidated financial statements for the three months ended November 30, 2021, including earnings, balance sheets, and cash flows [Condensed Consolidated Statements of Earnings](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Operating revenues for the three months ended November 30, 2021, increased to $166.2 million, with net earnings rising to $7.9 million Condensed Consolidated Statements of Earnings (Q1 FY2022 vs Q1 FY2021) | Metric | Three months ended Nov 30, 2021 | Three months ended Nov 30, 2020 | | :--- | :--- | :--- | | **Operating revenues** | $166,152 thousand | $108,485 thousand | | **Gross profit** | $37,438 thousand | $31,408 thousand | | **Operating income** | $13,361 thousand | $7,535 thousand | | **Net earnings** | $7,901 thousand | $7,095 thousand | | **Diluted EPS** | $0.72 | $0.65 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $649.4 million as of November 30, 2021, driven by higher inventories and receivables, with shareholders' equity growing to $341.9 million Key Balance Sheet Items | Metric | Nov 30, 2021 | Nov 30, 2020 | Aug 31, 2021 | | :--- | :--- | :--- | :--- | | **Total current assets** | $426,333 thousand | $356,450 thousand | $416,103 thousand | | Inventories, net | $173,115 thousand | $114,278 thousand | $145,244 thousand | | **Total assets** | $649,445 thousand | $575,202 thousand | $637,185 thousand | | **Total current liabilities** | $147,782 thousand | $102,387 thousand | $138,240 thousand | | Long-term debt | $115,471 thousand | $115,641 thousand | $115,514 thousand | | **Total liabilities** | $307,502 thousand | $271,301 thousand | $298,740 thousand | | **Total shareholders' equity** | $341,943 thousand | $303,901 thousand | $338,445 thousand | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was $24.2 million for Q1 FY2022, primarily due to increased receivables and inventories, with cash ending at $84.7 million Cash Flow Summary (Q1 FY2022 vs Q1 FY2021) | Metric | Three months ended Nov 30, 2021 | Three months ended Nov 30, 2020 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | ($24,179) thousand | $15,373 thousand | | **Net cash used in investing activities** | ($14,158) thousand | ($5,842) thousand | | **Net cash used in financing activities** | ($2,321) thousand | ($4,725) thousand | | **Net change in cash and cash equivalents** | ($42,388) thousand | $5,399 thousand | | **Cash and cash equivalents, end of period** | $84,719 thousand | $126,802 thousand | [Notes to the Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies and financial statement items, including revenue recognition, income taxes, debt, and segment information - The company adopted ASU No. 2019-12, Simplifying the Accounting for Income Taxes, in Q1 FY2022, with no material impact[21](index=21&type=chunk) - The company is defending product liability lawsuits related to its X-Lite® end terminal and is under DOJ investigation, but no loss accrual is deemed probable[41](index=41&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - An accrued environmental remediation liability of **$16.0 million** exists for the Lindsay, Nebraska facility[45](index=45&type=chunk)[48](index=48&type=chunk) Segment Operating Revenues (Q1 FY2022 vs Q1 FY2021) | Segment | Three months ended Nov 30, 2021 | Three months ended Nov 30, 2020 | | :--- | :--- | :--- | | **Irrigation** | $145,909 thousand | $87,356 thousand | | North America | $78,976 thousand | $52,790 thousand | | International | $66,933 thousand | $34,566 thousand | | **Infrastructure** | $20,243 thousand | $21,129 thousand | | **Total operating revenues** | **$166,152 thousand** | **$108,485 thousand** | Segment Operating Income (Q1 FY2022 vs Q1 FY2021) | Segment | Three months ended Nov 30, 2021 | Three months ended Nov 30, 2020 | | :--- | :--- | :--- | | **Irrigation** | $17,212 thousand | $10,633 thousand | | **Infrastructure** | $2,766 thousand | $4,256 thousand | | **Corporate** | ($6,617) thousand | ($7,354) thousand | | **Total operating income** | **$13,361 thousand** | **$7,535 thousand** | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=20&type=section&id=ITEM%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 FY2022 financial results, highlighting a 53% revenue increase driven by irrigation, alongside challenges from inflation and supply chain constraints [Executive Overview and Outlook](index=21&type=section&id=Executive%20Overview%20and%20Outlook) Q1 FY2022 operating revenues rose 53% to $166.2 million, driven by irrigation, with backlog increasing to $154.8 million despite cost and supply challenges - Operating revenues for Q1 FY2022 were **$166.2 million**, a **53% increase** YoY, with irrigation revenues up **67%** and infrastructure revenues down **4%**[69](index=69&type=chunk) - Primary drivers for irrigation demand include a **40% increase** in U.S. corn prices and a **23% increase** in estimated U.S. net farm income for 2021[70](index=70&type=chunk) - The backlog of unshipped orders at November 30, 2021, was **$154.8 million**, a substantial increase from **$89.2 million** in the prior year, primarily due to higher irrigation backlog[75](index=75&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Consolidated revenues increased 53% to $166.2 million in Q1 FY2022, driven by irrigation growth, though gross margin compressed to 22.5% due to higher costs and sales mix Consolidated Results of Operations (Q1 FY2022 vs Q1 FY2021) | Metric | Q1 FY2022 | Q1 FY2021 | % Change | | :--- | :--- | :--- | :--- | | **Operating revenues** | $166,152 thousand | $108,485 thousand | 53% | | **Gross profit** | $37,438 thousand | $31,408 thousand | 19% | | Gross margin | 22.5% | 29.0% | -6.5 p.p. | | **Operating income** | $13,361 thousand | $7,535 thousand | 77% | | Operating margin | 8.0% | 6.9% | +1.1 p.p. | | **Net earnings** | $7,901 thousand | $7,095 thousand | 11% | - North America irrigation revenues increased **50%** to **$79.0 million**, driven by higher unit sales and prices amid strong commodity markets[79](index=79&type=chunk) - International irrigation revenues grew **94%** to **$66.9 million**, with strong performance in Brazil, the Middle East, and Europe[80](index=80&type=chunk) - Gross margin decreased to **22.5%** from **29.0%** due to higher raw material costs, a **$6.0 million** LIFO impact, and a sales mix shift to lower-margin irrigation products[83](index=83&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and equivalents decreased to $114.9 million due to $24.2 million cash used in operations, with fiscal 2022 capital expenditures projected at $20.0-$25.0 million - Cash, cash equivalents, and marketable securities decreased to **$114.9 million** at Nov 30, 2021, from **$146.7 million** at Aug 31, 2021[88](index=88&type=chunk) - Cash used in operating activities was **$24.2 million**, a reversal from **$15.4 million** provided in the prior year, mainly due to increases in receivables and inventories[90](index=90&type=chunk) - The capital allocation plan prioritizes organic growth, dividends, acquisitions, and share repurchases, with fiscal 2022 capital expenditures projected at **$20.0 million to $25.0 million**[93](index=93&type=chunk)[94](index=94&type=chunk) - The company has a **$50.0 million** revolving credit facility with no outstanding borrowings as of November 30, 2021[97](index=97&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=23&type=section&id=ITEM%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes have occurred in the company's quantitative and qualitative disclosures about market risk since the last Annual Report on Form 10-K - There have been no material changes from the Company's quantitative and qualitative disclosures about market risk as previously disclosed in the Annual Report on Form 10-K for the fiscal year ended August 31, 2021[101](index=101&type=chunk) [Controls and Procedures](index=24&type=section&id=ITEM%204%20%E2%80%93%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of November 30, 2021, with no significant changes to internal control over financial reporting - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of November 30, 2021[102](index=102&type=chunk) - No significant changes were made to the Company's internal control over financial reporting during the quarter[103](index=103&type=chunk) Part II – OTHER INFORMATION [Legal Proceedings](index=25&type=section&id=ITEM%201%20%E2%80%93%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 8 – Commitments and Contingencies in the financial statements - Information regarding legal proceedings is incorporated by reference from Note 8 – Commitments and Contingencies in Part I, Item 1 of this report[104](index=104&type=chunk) [Risk Factors](index=25&type=section&id=ITEM%201A%20%E2%80%93%20Risk%20Factors) No material changes have occurred in the risk factors previously disclosed in the company's most recent Annual Report on Form 10-K - There have been no material changes from risk factors previously disclosed in the Company's most recent Annual Report on Form 10-K[105](index=105&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=25&type=section&id=ITEM%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[106](index=106&type=chunk) [Exhibits](index=26&type=section&id=ITEM%206%20%E2%80%93%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and interactive data files - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and Interactive Data Files (Inline XBRL)[110](index=110&type=chunk)
Lindsay(LNN) - 2022 Q1 - Earnings Call Transcript
2022-01-06 21:00
Lindsay Corporation (NYSE:LNN) Q1 2022 Earnings Conference Call January 6, 2022 11:00 AM ET Company Participants Randy Wood - President, Chief Executive Officer Brian Ketcham - Senior Vice President, Chief Financial Officer Conference Call Participants Nathan Jones - Stifel Brian Drab - William Blair Jon Braatz - Kansas City Capital Ryan Connors - Boenning & Scattergood Chris Shaw - Monness Crespi Operator Good morning. My name is Vaishnavi and I will be your conference operator today. At this time, I would ...
Lindsay(LNN) - 2021 Q4 - Annual Report
2021-10-21 20:21
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (MARK ONE) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended August 31, 2021 incorporation or organization) Identification No.) or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-13419 Lindsay Corporation (Exact name of registrant as specified in its charter) Delaware 47-0554096 (State or other jur ...
Lindsay(LNN) - 2021 Q4 - Earnings Call Transcript
2021-10-21 17:30
Financial Data and Key Metrics Changes - Total revenues for Q4 FY2021 increased by 20% to $153.6 million compared to $128.4 million in the same quarter last year [19] - Net earnings for Q4 were $5.8 million or $0.53 per diluted share, down from $14.7 million or $1.35 per diluted share in the prior year, impacted by an after-tax LIFO charge of approximately $4.5 million [19] - For the full fiscal year 2021, total revenues increased by 20% to $567.6 million compared to $474.7 million in the prior year, with net earnings rising to $42.6 million or $3.88 per share from $38.6 million or $3.56 per diluted share [20] Business Line Data and Key Metrics Changes - Irrigation segment revenues for Q4 increased by 63% to $125.3 million compared to $77 million in the same quarter last year, with North America irrigation revenues up by 30% [21] - International irrigation revenues for Q4 increased by 100% to $71.7 million, driven by higher unit sales volumes and favorable foreign currency translation [22] - Infrastructure segment revenues for Q4 decreased by 45% to $28.4 million, primarily due to lower Road Zipper system sales [26] Market Data and Key Metrics Changes - The domestic irrigation market showed strong commodity and farm income projections, with net farm income projected to increase by 19.5% in 2021 [10] - Shipment records were set in Turkey and Brazil, with activity more than doubling year-over-year in each market [13] - The Europe, Africa, and Middle East region continued to ship a large project into Egypt without disruption, indicating strong market opportunities [15] Company Strategy and Development Direction - The company is focused on capacity and efficiency investments in Brazil, China, Turkey, and the US to meet demand and leverage its global footprint [7] - The innovation pipeline includes the development of the Smart Pivot platform in irrigation and the Road Connect platform in infrastructure, with positive feedback from users [7] - The company is optimistic about growth potential tied to the needs for food security and efficient resource utilization [76] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are inflationary pressures impacting farmers, the return on investment for irrigation equipment remains favorable, supporting demand [59] - The company expects some growth in the infrastructure segment driven by non-Road Zipper business and potential stimulus funding [39] - Management remains optimistic about the passage of infrastructure legislation, which could provide a positive tailwind for the infrastructure business [17] Other Important Information - The company published its third sustainability report, outlining a five-point focus on sustainable technologies and operational improvements [9] - Total available liquidity at the end of the fiscal year was $196.7 million, with a strong position to invest in growth opportunities [29][30] Q&A Session Summary Question: Expectations for LIFO charges in fiscal 2022 - Management indicated that if raw material prices stabilize, they do not expect additional LIFO headwinds, and some benefits may be realized as inventory quantities decline [33][34] Question: Revenue expectations for the infrastructure segment - Management clarified that while Road Zipper projects are moving slowly, they expect traditional revenue patterns in the non-Road Zipper part of the infrastructure business [38][39] Question: Impact of pricing on segment revenues - Management noted that pricing had a significant impact on North America Pivot business, with price growth above 30% in Q4, while infrastructure pricing was approaching 10% overall [45][46] Question: Demand destruction due to rising costs - Management acknowledged some "sticker shock" among customers but noted that strong farm income is supporting continued demand for irrigation equipment [58][59] Question: Breakdown of project sales between leasing and buying - Management indicated that most Road Zipper installations are permanent, leading to a preference for purchases over leases [68][69] Question: Anticipated end-of-year demand from tax-related purchases - Management is preparing for a potential bump in demand as farmers look to make capital investments before year-end, especially given limited availability of other capital equipment [71][72]
Lindsay(LNN) - 2021 Q4 - Earnings Call Presentation
2021-10-21 14:23
/LINDSAY" ammunimmunummunummum 4th Quarter Fiscal 2021 Earnings Slide Deck 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 wit ...