Lindsay Corporation Reports Fiscal 2014 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, 2014.

Fourth Quarter Results

Fourth quarter fiscal 2014 revenues were $147.5 million versus $148.4 million of revenues in the same prior year period. Net earnings were $11.3 million or $0.89 per diluted share compared with $10.4 million or $0.81 per diluted share in the prior year.

Total irrigation equipment revenues decreased 2 percent to $125.8 million from $128.2 million in the prior fiscal year’s fourth quarter. U.S. irrigation revenues of $70.7 million increased 31 percent with sales resulting from storm damage contributing an incremental $15 million to $20 million to fourth quarter revenue. International irrigation revenues of $55.1 million decreased 26 percent as the Iraq contract contributed $17 million in revenues to the prior year fourth quarter. Excluding the impact of these two items as well as the incremental revenue from the Lakos acquisition, fourth quarter irrigation revenues would have declined approximately 11 percent. Infrastructure revenues increased 7 percent to $21.7 million with increases in road safety and rail product lines.

Gross margin was 27.1 percent of sales compared to 26.0 percent of sales in the prior year’s fourth quarter. Gross margin in irrigation increased by approximately 2 percentage points primarily due to the mix of sales. Infrastructure gross margins decreased by approximately 3 percentage points also primarily due to sales mix.

Operating expenses were $23.7 million compared to $22.8 million in the same prior year period. Excluding the acquired Lakos filtration business, operating expenses decreased $1.1 million with the largest decreases in incentive compensation and Iraq project fees. Operating expenses including Lakos were 16.1 percent of sales in the fourth quarter of fiscal 2014 compared with 15.3 percent of sales in the prior year period. Operating margins were 11.0 percent in the fourth quarter, versus 10.6 percent in the prior year period.

Cash and cash equivalents of $171.8 million were $19.9 million higher compared to the end of the prior fiscal year. During the quarter the Company repurchased 290,275 shares for $23.3 million. In fiscal 2014 the Company repurchased 497,899 shares for $41.1 million.

Backlog of unshipped orders at August 31, 2014 was $79.6 million compared with $66.5 million at August 31, 2013 and $73.6 million at May 31, 2014. The current year infrastructure backlog includes a $12.7 million Road Zipper System order for the Golden Gate Bridge which is expected to be recognized in revenue in fiscal 2015.

Twelve Month Results

Total revenues for the year ended August 31, 2014 were $617.9 million, a 11 percent decrease from $690.8 million of revenues in the same prior year period. Net earnings were $51.5 million or $4.00 per diluted share compared with $70.6 million or $5.47 per diluted share in the prior year.

Total irrigation equipment revenues decreased 14 percent to $539.9 million from $626.0 million during the prior fiscal year. U.S. irrigation revenues of $331.5 million declined 14 percent, while international irrigation revenues of $208.4 million decreased 13 percent due primarily to near-completion of the Iraq project in fiscal 2013. Infrastructure revenues increased 20 percent to $78.0 million.

Outlook

Rick Parod, president and chief executive officer, commented, “Incremental sales resulting from Spring and Summer storms in the U.S. Midwest softened the negative impact of the decline in commodity prices in the quarter. It is too early to predict the effect the lower commodity prices and projected reductions in farm income will have in fiscal 2015, however the expected conditions position the U.S. irrigation markets lower, while we expect further improvements in sales and profits in our infrastructure segment.”

Parod continued, “Longer term, drivers for the Company’s markets of population growth, expanded food production and efficient water use, and infrastructure upgrades and expansion support our expectation for growth. In fiscal 2015 we plan to continue to invest in expanding our competitive advantage in product and service offerings, our global market position, as well as in further capacity expansion in international markets. In addition, we will continue to execute against the capital allocation plan announced in January 2014.”

Fourth-Quarter Conference Call

Lindsay’s fiscal 2014 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 # 13335908. 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, 2014 Lindsay had approximately 12.4 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 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.