Lindsay Corporation Reports Fiscal 2011 Fourth Quarter, Full-Year Results

Lindsay Corporation (NYSE: LNN), a leading provider of irrigation systems and infrastructure products, today announced results for its fourth quarter and full fiscal year ended August 31, 2011.

Fourth Quarter Results

Fourth quarter fiscal 2011 total revenues of $116.1 million increased 33 percent from $87.2 million in the same prior year period. Net earnings were $5.9 million or $0.46 per diluted share compared with $6.0 million or $0.48 per diluted share, in the prior fiscal year’s fourth quarter. Fourth quarter results included approximately $2.6 million of costs and expenses, or $0.13 per diluted share on an after tax basis, relating to the fourth quarter implementation of the new enterprise resource planning system (ERP) and an adverse administrative tax ruling in a foreign business unit.

Total irrigation equipment revenues increased 60 percent to $91.4 million from $57.2 million in the prior fiscal year’s fourth quarter. Domestic irrigation revenues of $47.9 million increased 41 percent, while international irrigation revenues of $43.5 million increased 87 percent as compared to the same prior year period. Infrastructure revenues decreased 18 percent to $24.7 million due to lower sales of Quick-Change Moveable Barrier (QMB) product.

Gross margin was 25.9 percent compared to 29.5 percent in the prior year’s fourth quarter. Total gross margins were lower primarily due to lower revenues of higher-margin QMB product as compared to the same period last year. Irrigation gross margins declined from the same quarter last year due to lower margins realized on international project sales, and incremental spending and factory inefficiencies related to the ERP implementation in the Nebraska-based operations, estimated to be approximately $1.0 million.

Operating expenses were $20.3 million in the quarter compared to $16.0 million in the fourth quarter of the prior fiscal year. The primary elements of the expense increase included $0.6 million of consulting expenses for the ERP implementation, $1.0 million from the foreign tax ruling, and other increases related to higher incentive compensation and inclusion of operating expenses from acquisitions completed in 2010. Operating expenses were 17.5 percent of sales in the fourth quarter of 2011 compared with 18.3 percent of sales in the prior year period. Operating income of $9.8 million increased from $9.7 million in the prior year period.

Cash and cash equivalents of $108.2 million were $24.7 million higher compared with last year, while debt decreased $4.3 million over the same period. Cash uses in the fourth quarter included the acquisition of a company focused on engineering, design and consulting for agricultural irrigation systems, water resource management, and monitoring technologies.

Lindsay’s backlog of unshipped orders at August 31, 2011 was $46.0 million compared with $38.4 million at August 31, 2010 and $43.3 million at May 31, 2011.

Full-Year Results

Total revenues for the fiscal year ended August 31, 2011 were $478.9 million, a 34 percent increase from $358.4 million for the prior year. Total irrigation equipment revenues of $369.9 million increased 43 percent from a year ago, while infrastructure revenues increased 9 percent to $109.0 million. The Company’s operating income for the fiscal year was $56.6 million compared to $37.8 million during the prior year period. Net earnings were $36.8 million or $2.90 per diluted share, as compared to $24.9 million, or $1.98 per diluted share for the prior year period.

Gross margin was 27.1 percent compared to 27.6 percent for the year ended August 31, 2010. Gross margins were lower primarily due to regional sales mix, product mix, and factory inefficiencies resulting from the ERP implementation. Operating expenses were 15.3 percent of sales in fiscal 2011 compared with 17.0 percent of sales in fiscal 2010. The increase in operating expenses for fiscal 2011 was primarily attributable to investments in sales and marketing, higher research and development expenses, acquisitions completed in 2010 along with increased incentive compensation.

On July 18, 2011, Lindsay announced that it had increased its regular quarterly cash dividend by 6 percent to $0.09 per share from $0.085 per share. The new annual indicated rate is $0.36 per share, an increase from the previous annual indicated rate of $0.34 per share.

Outlook

Rick Parod, president and chief executive officer, commented, "Strong sales results in the fourth quarter completed a year in which we saw significant growth in nearly all of our irrigation markets. Our operating margins improved to 11.8 percent for the year from 10.6 percent last year. And while margins in the fourth quarter were lower than a year ago, we completed needed investments in our operating systems.”

Parod added, "Although macro uncertainties exist in many global markets as we enter our fiscal 2012, we are encouraged by positive farmer sentiment and higher commodity prices. While commodity prices will fluctuate, as we have seen most recently, growth drivers of expanded food production and efficient and environmentally friendly water use remain very positive for our business, long-term. In addition, demand for our unique offering of transportation safety products will continue to be driven by population growth and the need for improved road safety.”

Fourth-Quarter Conference Call

Lindsay’s fiscal 2011 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) 748-0479 domestically, or (706) 758-9823 internationally, and referring to conference ID #13311397. 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. 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 through its wholly owned subsidiaries, Barrier Systems Inc. and Snoline S.P.A. At August 31, 2011, Lindsay had approximately 12.7 million shares outstanding, which are traded on the New York Stock Exchange under the symbol LNN.

For more information regarding Lindsay Corporation, see Lindsay's Web site at www.lindsay.com. For more information on the Company's infrastructure products, visit www.barriersystemsinc.com and www.snoline.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.