Lindsay(LNN) - 2024 Q3 - Quarterly Report

Financial Performance - Operating revenues for the three months ended May 31, 2024, were $139,199 thousand, a decrease of 15.4$164,553 thousand for the same period in 2023[7] - Gross profit for the nine months ended May 31, 2024, was $145,356 thousand, down 9.4$160,499 thousand in the prior year[7] - Net earnings for the three months ended May 31, 2024, increased to $20,379 thousand, compared to$16,881 thousand for the same period in 2023, representing a growth of 20.5%[8] - Basic earnings per share for the nine months ended May 31, 2024, was $4.86, a slight increase from$4.83 in the same period of 2023[7] - Net earnings for the nine months ended May 31, 2024, were $53,521 thousand, compared to$53,150 thousand for the same period in 2023, reflecting a growth of 0.7%[20] - Total comprehensive income for the nine months ended May 31, 2024, was $49,529 thousand, down from$52,016 thousand in the previous year, indicating a decrease of approximately 4.8%[20] Assets and Liabilities - Total assets as of May 31, 2024, were $758,101 thousand, an increase from$723,618 thousand as of May 31, 2023[11] - Total liabilities decreased to $278,105 thousand as of May 31, 2024, from$286,822 thousand as of May 31, 2023[11] - Shareholders' equity increased to $479,996 thousand as of May 31, 2024, compared to$436,796 thousand a year earlier, reflecting a growth of 9.9%[11] - Cash and cash equivalents increased to $140,221 thousand as of May 31, 2024, compared to$131,577 thousand a year earlier[11] - The balance of retained earnings increased to $678,261 thousand as of May 31, 2024, from$620,922 thousand as of May 31, 2023, representing a growth of 9.2%[20] Cash Flow and Dividends - Cash dividends paid increased to $11,557 thousand for the nine months ended May 31, 2024, compared to$11,228 thousand in the same period of 2023, representing a rise of 2.9%[20] - The company declared cash dividends of $0.35 per share for the three months ended May 31, 2024, up from$0.34 in the same period of 2023[7] - Operating activities provided net cash of $42,650 thousand for the nine months ended May 31, 2024, down from$59,168 thousand in the prior year, a decrease of 28.0%[20] Stock and Shareholder Actions - The company repurchased common stock amounting to $17,900 thousand during the nine months ended May 31, 2024, while there were no repurchases in the same period of the previous year[20] - As of May 31, 2024, the Company had repurchased 154 thousand shares for$17.9 million, with $46.0 million remaining available for future repurchases[66][67] Revenue Segments - Irrigation segment revenues decreased 19$114.8 million, while infrastructure segment revenues increased 11% to $24.4 million for the three months ended May 31, 2024[77] - The irrigation segment accounted for 83$46.6 million from $67.5 million in the same period in 2023[89] Tax and Regulatory Matters - The effective income tax rate for the three months ended May 31, 2024, was -1.0$4.8 million recognized in Brazil[94] - The company recorded an income tax benefit of $0.2 million for the three months ended May 31, 2024, compared to an expense of$8.9 million in the same period of 2023[39] Market Conditions and Future Outlook - U.S. corn prices decreased approximately 24% and U.S. soybean prices decreased approximately 7% from May 2023 levels, impacting demand for irrigation equipment[80] - The USDA estimated 2024 U.S. net farm income to be $116.1 billion, a decrease of 26$155.9 billion[80] - The Company announced a multi-year supply agreement for irrigation systems in the MENA region, valued at over $100 million, expected to be recognized from Q4 fiscal 2024 through Q1 fiscal 2026[82] Environmental and Legal Matters - The total environmental remediation liabilities as of May 31, 2024, amounted to$10,632,000, down from $12,300,000 on May 31, 2023, indicating a decrease of approximately 13.6%[61] - The company is involved in multiple product liability lawsuits related to its X-Lite® end terminal, which may lead to additional lawsuits in the future[53]