Lindsay Corporation Reports Fiscal 2022 Fourth Quarter and Full Year Results

Fourth quarter consolidated earnings triple to $17.9 million with EPS of $1.62
Fourth quarter Irrigation revenues increase on strong unit volume growth in North America
Fourth quarter Infrastructure revenues increase on improved Road Zipper System^® sales
Full year consolidated results reach all-time highs of $770.7 million in revenues and EPS of $5.94

OMAHA, Neb. - Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its fourth quarter and fiscal year, which ended on August 31, 2022.

Fourth Quarter and Full Year Summary

Revenues for the fourth quarter of fiscal 2022 were $190.2 million, an increase of $36.5 million, or 24 percent, compared to revenues of $153.6 million in the prior year fourth quarter. Net earnings for the quarter were $17.9 million, or $1.62 per diluted share, compared with net earnings of $5.8 million, or $0.53 per diluted share, for the prior year fourth quarter.

Revenues for the year ended August 31, 2022 were $770.7 million, an increase of $203.1 million, or 36 percent, compared to revenues of $567.6 million in the prior year. Net earnings for the year were $65.5 million, or $5.94 per diluted share, compared with net earnings of $42.6 million, or $3.88 per diluted share, for the prior year.

"Demand for irrigation equipment remained strong across all geographies in our fourth quarter, particularly in North America where damage to existing systems due to severe weather in the Midwest resulted in a large increase in replacement sales. In the infrastructure business, fourth quarter revenue growth was driven by an increase in Road Zipper sales as we began delivery of a large project we had been expecting in the second half of our fiscal year," said Randy Wood, President and Chief Executive Officer. "For the full year, strong growth in our irrigation business led to record consolidated revenues of $770.7 million. We were also pleased that, through effective price management and improved operating performance, we were able to overcome the inflationary headwinds we faced earlier in the year to deliver results that met our annual operating margin objective of 12 percent."

Fourth Quarter Segment Results

Irrigation segment revenues for the fourth quarter of fiscal 2022 were $150.5 million, an increase of $25.2 million, or 20 percent, compared to $125.3 million in the prior year fourth quarter. North America irrigation revenues of $80.1 million increased $26.5 million, or 50 percent, compared to the prior year fourth quarter. The increase in North America irrigation revenues resulted from higher unit sales volumes and higher average selling prices. Higher unit sales volumes resulted primarily from increased storm damage replacement demand compared to the prior year fourth quarter. International irrigation revenues of $70.4 million decreased $1.3 million, or 2 percent, including unfavorable effects of foreign currency translation of approximately $3.5 million compared to the prior year fourth quarter. Strong sales growth in Brazil, Europe and other markets more than offset the impact of a large project in Egypt in the prior year that did not repeat.

Irrigation segment operating income for the fourth quarter of fiscal 2022 was $24.2 million, an increase of $13.6 million, or 129 percent, compared to the prior year fourth quarter. Operating margin was 16.1 percent of sales, compared to 8.4 percent of sales in the prior year fourth quarter. Increased operating income and margin resulted from higher unit sales volumes, improved price realization and lower inflationary headwinds compared to the prior year fourth quarter.

Infrastructure segment revenues for the fourth quarter of fiscal 2022 were $39.7 million, an increase of $11.3 million, or 40 percent, compared to $28.4 million in the prior year fourth quarter. The increase resulted from higher Road Zipper System project sales, which were partially offset by lower Road Zipper System lease revenue.

Infrastructure segment operating income for the fourth quarter of fiscal 2022 was $11.5 million, an increase of $5.7 million or 97 percent compared to the prior year fourth quarter. Operating margin was 28.8 percent of sales, compared to 20.5 percent of sales in the prior year fourth quarter, which is largely due to the increase in Road Zipper System sales.

The backlog of unfilled orders at August 31, 2022 was $96.8 million compared with $149.1 million at August 31, 2021. The irrigation backlog is lower compared to the prior year while the infrastructure backlog is higher.

Outlook

"Current commodity prices and net farm income projections support a positive outlook for North America irrigation equipment demand for the fall selling season, however the ongoing impacts from inflation and supply chain challenges can also impact capital investment decisions for farmers. We expect growth in international markets through expanded production driven by positive agricultural market fundamentals and continuing concerns over food security and global grain supplies," said Mr. Wood. "In the infrastructure business, we expect to continue delivery of the large Road Zipper System project during the first quarter of fiscal 2023, and expectations for continued growth in this business are supported by an anticipated increase in U.S. infrastructure spending and by the ongoing management of our project sales funnel."

Fourth Quarter Conference Call

Lindsay's fiscal 2022 fourth 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 Web site, www.lindsay.com. Replays of the conference call will remain on our Web site 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 Web site.

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^® remote irrigation management and 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.





LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)

	Three Months Ended August 31,								Years Ended August 31,
(in thousands, except per share amounts)		2022				2021				2022				2021

Operating revenues	$		190,196		$		153,648		$		770,743		$		567,646
Cost of operating revenues			133,079				120,081				571,565				417,441
Gross profit			57,117				33,567				199,178				150,205

Operating expenses:
Selling expense			9,850				8,136				33,920				30,816
General and administrative expense			14,922				12,153				55,470				51,923
Engineering and research expense			4,563				3,855				15,145				13,359
Total operating expenses			29,335				24,144				104,535				96,098

Operating income			27,782				9,423				94,643				54,107

Other (expense) income:
Interest expense			(924	)			(1,167	)			(4,269	)			(4,751	)
Interest income			166				285				622				1,083
Other expense, net			(3,392	)			(752	)			(3,128	)			(53	)
Total other (expense) income			(4,150	)			(1,634	)			(6,775	)			(3,721	)

Earnings before income taxes			23,632				7,789				87,868				50,386

Income tax expense			5,703				1,985				22,399				7,814

Net earnings	$		17,929		$		5,804		$		65,469		$		42,572

Earnings per share:
Basic	$		1.63		$		0.53		$		5.97		$		3.91
Diluted	$		1.62		$		0.53		$		5.94		$		3.88

Shares used in computing earnings per share:
Basic			10,980				10,907				10,965				10,886
Diluted			11,063				11,039				11,031				10,985

Cash dividends declared per share	$		0.34		$		0.33		$		1.33		$		1.30






LINDSAY CORPORATION AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Unaudited)

	Three months ended						Twelve months ended
(in thousands)	August 31, 2022			August 31, 2021			August 31, 2022			August 31, 2021
Operating revenues:
Irrigation:
North America	$	80,082		$	53,539		$	355,683		$	273,871
International		70,387			71,715			310,146			197,487
Irrigation total		150,469			125,254			665,829			471,358
Infrastructure		39,727			28,394			104,914			96,288
Total operating revenues	$	190,196		$	153,648		$	770,743		$	567,646

Operating income:
Irrigation	$	24,250		$	10,578		$	105,763		$	63,181
Infrastructure		11,459			5,810			18,328			20,174
Corporate		(7,927	)		(6,965	)		(29,448	)		(29,248	)
Total operating income	$	27,782		$	9,423		$	94,643		$	54,107

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, 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 moveable barriers, specialty barriers, crash cushions and end terminals, and road marking and road safety equipment.





LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


(in thousands)	August 31, 2022			August 31, 2021

ASSETS
Current assets:
Cash and cash equivalents	$	105,048		$	127,107
Marketable securities		11,460			19,604
Receivables, net of allowance of $4,118 and $3,422, respectively		138,200			93,609
Inventories, net		193,776			145,244
Other current assets		28,617			30,539
Total current assets		477,101			416,103

Property, plant, and equipment, net		94,472			91,997
Intangible assets, net		18,208			20,367
Goodwill		67,130			67,968
Operating lease right-of-use assets		19,181			18,281
Deferred income tax assets		9,313			8,113
Other noncurrent assets		25,248			14,356
Total assets	$	710,653		$	637,185

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	60,036		$	45,209
Current portion of long-term debt		222			217
Other current liabilities		100,684			92,814
Total current liabilities		160,942			138,240

Pension benefits liabilities		4,892			5,754
Long-term debt		115,341			115,514
Operating lease liabilities		19,810			18,301
Deferred income tax liabilities		1,054			832
Other noncurrent liabilities		15,256			20,099
Total liabilities		317,295			298,740

Shareholders' equity:
Preferred stock		-			-
Common stock		19,063			18,991
Capital in excess of stated value		94,006			86,495
Retained earnings		579,000			528,130
Less treasury stock - at cost		(277,238	)		(277,238	)
Accumulated other comprehensive loss, net		(21,473	)		(17,933	)
Total shareholders' equity		393,358			338,445
Total liabilities and shareholders' equity	$	710,653		$	637,185






LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Years Ended August 31,
(in thousands)		2022				2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$		65,469		$		42,572
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization			20,178				19,177
Provision for uncollectible accounts receivable			903				771
Deferred income taxes			(2,063	)			1,911
Share-based compensation expense			5,458				6,186
Foreign currency transaction loss (gain)			2,274				(1,934	)
Other, net			695				(828	)
Changes in assets and liabilities:
Receivables			(47,514	)			(11,535	)
Inventories			(53,803	)			(38,158	)
Other current assets			1,220				(8,132	)
Accounts payable			13,832				17,993
Other current liabilities			186				18,433
Other noncurrent assets and liabilities			(3,787	)			(2,488	)
Net cash provided by operating activities			3,048				43,968

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment			(15,595	)			(26,511	)
Purchases of marketable securities available-for-sale			(18,468	)			(19,356	)
Proceeds from maturities of marketable securities available-for-sale			25,968				18,825
Other investing activities, net			(855	)			(577	)
Net cash used in investing activities			(8,950	)			(27,619	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options			2,894				3,965
Common stock withheld for payroll tax obligations			(1,181	)			(1,269	)
Proceeds from employee stock purchase plan			412				-
Principal payments on long-term debt			(218	)			(195	)
Dividends paid			(14,599	)			(14,166	)
Net cash used in financing activities			(12,692	)			(11,665	)

Effect of exchange rate changes on cash and cash equivalents			(3,465	)			1,020
Net change in cash and cash equivalents			(22,059	)			5,704
Cash and cash equivalents, beginning of period			127,107				121,403
Cash and cash equivalents, end of period	$		105,048		$		127,107

View source version on businesswire.com: https://www.businesswire.com/news/home/20221019006187/en/

LINDSAY CORPORATION:
Brian Ketcham
Senior Vice President & Chief Financial Officer
402-827-6579

THREE PART ADVISORS:
Jeff Elliott 972-423-7070
Gary Guyton 214-442-0016

10/20/2022 6:50:00 AM