Lindsay Corp. (LNN) filed Quarterly Report for the period ended 2010-11-30.
Lindsay Corp. has a market cap of $795 million; its shares were traded at around $63.47 with a P/E ratio of 38.6 and P/S ratio of 2.2. The dividend yield of Lindsay Corp. stocks is 0.6%. Lindsay Corp. had an annual average earning growth of 15.6% over the past 10 years.LNN is in the portfolios of Kenneth Fisher of Fisher Asset Management, LLC, Manning & Napier Advisors, Inc, Chuck Royce of Royce& Associates, Mario Gabelli of GAMCO Investors, Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of LNN over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of LNN.
Highlight of Business Operations:
U.S. irrigation equipment revenues for the three months ended November 30, 2010 of $36.6 million increased $4.3 million or 14% compared to the same prior year period. The increase in U.S. irrigation revenues is primarily due to an increase in the number of irrigation systems sold compared to the prior years first fiscal quarter. Agricultural commodity prices remained strong with corn increasing 60%, soybeans increasing 25% and wheat up over 35% compared to the same time last year. The November update to the USDA projections for 2010 Net Farm Income indicates a 31% increase over 2009 and projects it to be the third highest on record. That, coupled with the rise in commodity prices has created positive economic conditions for U.S. farmers, enhancing their investment perspective. International irrigation equipment revenues for the three months ended November 30, 2010 of $23.4 million increased $2.4 million or 11% compared to the same prior year period. The increase in revenue was primarily due to higher export volume to the Latin America, Australia and New Zealand markets along with increased revenue from the Companys irrigation business units in China and Brazil.
Infrastructure products segment revenues for the three months ended November 30, 2010 of $29.2 million decreased $3.5 million or 11% from the same prior year period. The prior year first fiscal quarter included approximately $16.0 million of the $20.0 million Mexico City barrier project, which was completed in the second fiscal quarter of that year. During the first fiscal quarter of 2011, the Company completed, shipped and recognized in revenue approximately one-half of a QuickChange Moveable Barrier® (QMB®) project on the east coast of the U.S., worth approximately $15.0 million in total. The Company expects to ship the remainder of the project in the second fiscal quarter.
The Companys operating expenses of $17.6 million for the three months ended November 30, 2010 were $3.0 million higher compared the same prior year period. The increase in operating expenses included $0.7 million of incremental expenses for additional environmental monitoring and remediation as part of ongoing development and implementation of the EPA work plan at our Lindsay, Nebraska facility. In addition, higher product development expenses, higher personnel related costs, sales commissions for QMB® projects and incremental expenses from Digitec Inc. which was acquired in August 2010, also contributed to this increase. The aggregate impact of these items resulted in additional expense of $1.8 million. The increased operating expenses in the quarter primarily reflect growth initiatives for both business segments.
Net earnings were $4.3 million or $0.34 per diluted share for the three months ended November 30, 2010 compared with $6.7 million or $0.53 per diluted share for the same prior year period.
Cash flows used in financing activities totaled $1.7 million during the three months ended November 30, 2010 compared to cash flows used in financing activities of $2.7 million during the same prior year period. The decrease in cash used in financing activities was primarily due to a decrease of $0.5 million of principal payments on long-term debt and a decrease of $0.3 million upon issuance of common stock under stock compensation plans.
In 1992, the Company entered into a consent decree with the Environmental Protection Agency of the United States Government (the EPA) in which the Company committed to remediate environmental contamination of the groundwater that was discovered in 1982 through 1990 at and adjacent to its Lindsay, Nebraska facility (the site). The site was added to the EPAs list of priority superfund sites in 1989. Between 1993 and 1995, remediation plans for the site were approved by the EPA and fully implemented by the Company. Since 1998, the primary remaining contamination at the site has been the presence of volatile organic chemicals in the groundwater. The current remediation process consists of drilling wells into the aquifer and pumping water to the surface to allow these contaminants to be removed by aeration. In 2008, the Company and the EPA conducted a periodic five-year review of the status of the remediation of the contamination of the site. In response to the review, the Company and its environmental consultants have developed a remedial action work plan that will allow the Company and the EPA to better identify the boundaries of the contaminated groundwater and determine whether the contaminated groundwater is being contained by current and planned remediation methods. The Company accrues the anticipated cost of remediation when the obligation is probable and can be reasonably estimated. During the first quarter of fiscal 2011, the Company accrued incremental costs of $0.7 million for additional environmental monitoring and remediation in connection with the current ongoing remedial action work plan. Amounts accrued in balance sheet liabilities related to the remediation actions were $1.3 million, $1.1 million and $0.9 million at November 30, 2010 and 2009 and August 31, 2010, respectively. Although the Company has accrued all reasonably estimable costs of completing the actions defined in the current ongoing work plan agreed to between the Company and the EPA, it is possible that additional testing and additional environmental monitoring and remediation may be required in the future as part of the ongoing development and implementation of the EPA work plan, which could result in the recognition of additional related expenses.