Lindsay Corporation Reports Fiscal 2023 First Quarter Results

• First quarter net earnings more than double to $18.2 million and EPS improves to $1.65
• Irrigation revenues increase 4 percent on higher pricing and solid demand across core markets
• Infrastructure revenues increase 19 percent on higher Road Zipper System^® sales

Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its first quarter which ended on November 30, 2022.

First Quarter Summary

Revenues for the first quarter of fiscal 2023 were $176.2 million, an increase of $10.0 million, or 6 percent, compared to revenues of $166.2 million in the prior year first quarter. Net earnings for the quarter were $18.2 million, or $1.65 per diluted share, compared with net earnings of $7.9 million, or $0.72 per diluted share, for the prior year first quarter.

“Positive market fundamentals continue to support solid demand for irrigation equipment across our core markets,” said Randy Wood, President and Chief Executive Officer. "Improved price realization and reduced inflationary headwinds compared to the same prior year period contributed to operating income growth and margin expansion in our irrigation business. In our infrastructure business, increased Road Zipper System sales resulted from the completion of a large project that began in our prior year fourth quarter."

First Quarter Segment Results

Irrigation segment revenues for the first quarter of fiscal 2023 were $152.1 million, an increase of $6.2 million, or 4 percent, compared to $145.9 million in the prior year first quarter. North America irrigation revenues of $83.9 million increased $5.0 million, or 6 percent, compared to the prior year first quarter. The increase in North America irrigation revenues resulted primarily from higher average selling prices as unit sales volume was comparable to the prior year first quarter. International irrigation revenues of $68.1 million increased $1.2 million, or 2 percent. Higher sales in Brazil and other markets more than offset the impact of lower sales in Ukraine and Russia and a large Egypt project in the prior year first quarter that did not repeat. The current year was also impacted by the unfavorable effects of foreign currency translation of approximately $1.6 million compared to the prior year first quarter.

Irrigation segment operating income for the first quarter of fiscal 2023 was $28.6 million, an increase of $11.4 million, or 66 percent, compared to the prior year first quarter. Operating margin was 18.8 percent of sales, compared to 11.8 percent of sales in the prior year first quarter. Increased operating income and operating margin resulted primarily from improved price realization, lower inflationary impact on input costs and a more favorable margin mix of international irrigation revenues compared to the prior year first quarter.

Infrastructure segment revenues for the first quarter of fiscal 2023 were $24.1 million, an increase of $3.8 million, or 19 percent, compared to $20.2 million in the prior year first quarter. The increase resulted from higher Road Zipper System sales, which were partially offset by lower Road Zipper System lease revenue and lower sales of road safety products.

Infrastructure segment operating income for the first quarter of fiscal 2023 was $3.4 million, an increase of $0.6 million or 22 percent compared to the prior year first quarter. Operating margin was 14.0 percent of sales, compared to 13.7 percent of sales in the prior year first quarter. Increased operating income and operating margin resulted primarily from higher revenues and lower inflationary impact on input costs compared to the prior year first quarter. This increase was partially offset by a less favorable margin mix of revenues compared to the prior year first quarter.

The backlog of unfilled orders at November 30, 2022 was $129.6 million compared with $154.8 million at November 30, 2021. The irrigation and infrastructure backlog are both lower compared to the prior year first quarter.

Outlook

“Current commodity price levels and net farm income projections support a positive outlook for North America irrigation equipment demand in the near term. We expect demand in international markets to be supported by 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 growth to be supported by an anticipated increase in U.S. infrastructure spending and by the ongoing management of our project sales funnel.”

First Quarter Conference Call

Lindsay’s fiscal 2023 first 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.

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.

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