|Lindsay Corporation Reports Fiscal 2016 Fourth Quarter and Full Year Results|
Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its fourth quarter ended August 31, 2016.
Fourth Quarter Results
Fourth quarter fiscal 2016 revenues were $132.9 million compared to revenues of $123.5 million in the prior year's fourth quarter. Net earnings for the quarter were $7.8 million or $0.73 per diluted share compared with a net loss of $3.2 million or $0.28 per diluted share in the prior year.
Irrigation segment revenues for the quarter were $99.9 million, a 3 percent increase from $96.9 million in the prior year's fourth quarter. U.S. irrigation revenues of $57.3 million increased 5 percent, reflecting an increase in irrigation system unit volume with comparable pricing to prior year, along with a modest increase in other irrigation component revenues. International irrigation revenues for the fourth quarter were $42.6 million, an increase of 1 percent over the same quarter last year, including a negative currency translation impact of 2 percent. Increased sales in certain international project-oriented markets were offset by declines in Brazil and other markets. Infrastructure segment revenues increased 24 percent to $33.0 million for the quarter due to an increase in Road Zipper System sales as well as higher unit volumes in road safety products.
Gross margin expanded to 30.1 percent of sales compared to 27.1 percent of sales in the prior year's fourth quarter, due to improved margin in the infrastructure segment while irrigation segment margin was consistent with prior year. Strong infrastructure margin resulted from an increase in higher-margin Road Zipper System sales as well as improved product mix and volume leverage from road safety product sales.
Operating expenses decreased $2.7 million to $28.0 million compared to the fourth quarter of the prior fiscal year. The decrease resulted primarily from a $5.0 million bad debt charge in the prior year, offset by increased selling and new product development costs in the current year. Operating expenses were 21.0 percent of sales in the fourth quarter of fiscal 2016 compared with 24.8 percent of sales in the prior year period. Operating margins were 9.0 percent in the fourth quarter compared to 2.2 percent in the prior year period.
Cash and cash equivalents of $101.2 million at the end of the quarter were $37.9 million lower than the end of the prior fiscal year. The Company repurchased 688,790 shares for $48.3 million during fiscal 2016. There is $63.7 million that remains available under the Company's share repurchase program.
The backlog of unshipped orders at August 31, 2016 was $50.7 million compared with $48.0 million at August 31, 2015.
Full Year Results
Total revenues for the year ended August 31, 2016 were $516.4 million, a decrease of 8 percent compared to $560.2 million in the same prior year period. Foreign currency translation as compared to the prior year reduced fiscal 2016 revenues by 3 percent. Net earnings were $20.3 million or $1.85 per diluted share compared with $26.3 million or $2.22 per diluted share in the prior year. The current year includes $13.0 million of environmental expenses which, on an after tax basis, reduced net earnings by $8.5 million, or $0.78 per diluted share.
Total irrigation segment revenues decreased 7 percent to $421.6 million from $451.2 million during the prior fiscal year. U.S. irrigation revenues of $262.2 million reflected a decline of 4 percent, while international irrigation revenues of $159.4 million reflected a decline of 10 percent, including a negative currency translation impact of 7 percent. Infrastructure segment revenues decreased 13 percent to $94.8 million, due primarily to the completion of the large Golden Gate Bridge project in the prior year. Increased Road Zipper System lease revenue and road safety product sales were offset by declines in tubing, rail and contract manufacturing revenue.
Rick Parod, president and chief executive officer, commented, "We ended our fiscal year with improved fourth quarter performance in both Irrigation and Infrastructure. The irrigation market remains challenging as lower commodity prices and farm income continue to restrain demand for our irrigation products. In spite of these market conditions we have been able to improve gross margin levels and deliver solid operating income for the year. The Infrastructure segment continues to perform well as market activity reflects improving demand."
Parod continued, "Estimated record production for both corn and soybeans from the fall harvest in the U.S. will continue downward pressure on commodity prices. Accordingly, we are not expecting any meaningful improvement in the overall irrigation market in fiscal 2017 and will continue to manage our cost structure while investing in productivity improvement and selected growth initiatives. The longer term drivers for our markets of population growth, expanded food production and efficient water use, and infrastructure upgrades and expansion support our expectations for growth."
Fourth-Quarter Conference Call
Lindsay's fiscal 2016 fourth quarter investor conference call is scheduled for 11:00 a.m. Eastern Time today. Interested investors may participate in the call by dialing (888) 321-8161 in the U.S., or (706) 758-0065 internationally, and referring to conference ID # 88075624. 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 manufactures and markets irrigation equipment primarily used in agricultural markets which increase or stabilize crop production while conserving water, energy, and labor. The Company also manufactures and markets infrastructure and road safety products under the Lindsay Transportation Solutions trade name. At August 31, 2016 Lindsay had approximately 10.6 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.
For more information regarding Lindsay Corporation, see the Company's Web site at 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.
|Oct 13, 2016|