8-K
Lindsay Corp (LNN)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 21, 2021
LINDSAY CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 1-13419 | 47-0554096 |
|---|---|---|
| (State of<br>Incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification Number) |
| 18135 Burke Street, Suite 100<br> <br>Omaha, Nebraska | 68022 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
(402) 829-6800
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange<br>on which registered |
|---|---|---|
| Common Stock, $1.00 par value | LNN | New York Stock Exchange, Inc. |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. |
|---|
On October 21, 2021, Lindsay Corporation (the “Company”) issued a press release announcing the Company’s results of operations for its fourth quarter and fiscal year ended August 31, 2021. A copy of the press release is furnished herewith as Exhibit 99.1.
In addition, a copy of the slide presentation to be used during the Company’s fiscal 2021 fourth quarter and year-end investor conference call at 11:00 a.m. Eastern Time on October 21, 2021 is furnished herewith as Exhibit 99.2.
| Item 9.01. | Financial Statements and Exhibits. |
|---|---|
| 99.1 | Press Release, dated October 21, 2021, issued by the Company. |
| --- | --- |
| 99.2 | Slide Presentation for Fiscal 2021 Fourth Quarter and Year-End Investor Conference Call on October 21, 2021. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
In accordance with General Instruction B.2 of Form 8-K, the information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 relating to Item 2.02 and attached hereto, is being “furnished” and, as such, shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: October 21, 2021 | LINDSAY CORPORATION | |
|---|---|---|
| By: | /s/ Brian L. Ketcham | |
| Brian L. Ketcham, Senior Vice President and Chief Financial Officer |
EX-99.1
Exhibit 99.1
| 18135 BURKE ST. OMAHA, NE 68022 TEL: 402-829-6800 FAX:<br>402-829-6836 |
|---|
For further information, contact:
| LINDSAY CORPORATION: | THREE PART ADVISORS: |
|---|---|
| Brian Ketcham | Hala Elsherbini |
| Senior Vice President & Chief Financial Officer | 972-458-8000 |
| 402-827-6579 |
Lindsay Corporation Reports Fiscal 2021 Fourth Quarter and Full Year Results
| • | Improved demand for irrigation equipment continued in the fourth quarter across all geographies<br> |
|---|---|
| • | Fourth quarter irrigation revenues increase 63 percent to $125.3 million |
| --- | --- |
| • | Fourth quarter infrastructure revenues decline 45 percent compared to record results in prior year<br> |
| --- | --- |
| • | Fourth quarter net earnings reduced by after-tax LIFO impact of<br>$4.5 million, or $0.41 per diluted share |
| --- | --- |
OMAHA, Neb., October 21, 2021—Lindsay Corporation (NYSE: LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its fourth quarter and fiscal year, which ended on August 31, 2021.
Fourth Quarter and Full Year Summary
Revenues for the fourth quarter of fiscal 2021 were $153.6 million, an increase of $25.2 million, or 20 percent, compared to revenues of $128.4 million in the prior year fourth quarter. Net earnings for the quarter were $5.8 million, or $0.53 per diluted share, compared with net earnings of $14.7 million, or $1.35 per diluted share, for the prior year fourth quarter. Net earnings for the quarter were reduced by an after-tax LIFO impact of approximately $4.5 million, or $0.41 per diluted share.
Revenues for the year ended August 31, 2021, were $567.6 million, an increase of $93.0 million, or 20 percent, compared to revenues of $474.7 million in the prior year. Net earnings for the year were $42.6 million, or $3.88 per diluted share, compared with net earnings of $38.6 million, or $3.56 per diluted share, in the prior year.
“Fiscal 2021 was an extraordinary year in which our team demonstrated agility and resiliency in the face of the ongoing global pandemic,” said Randy Wood, President and Chief Executive Officer. “We were able to capitalize on market tailwinds in irrigation while navigating persistent headwinds created by pandemic-related project delays in our infrastructure business, significant raw material inflation, logistics challenges, and a tight labor market. We also remained highly focused on innovation, maintaining strong organizational health and safety, and increasing our commitment to sustainability initiatives.”
Fourth Quarter Segment Results
Irrigation segment revenues for the fourth quarter of fiscal 2021 were $125.3 million, an increase of $48.2 million, or 63 percent, compared to $77.0 million in the prior year fourth quarter. North America irrigation revenues of $53.5 million increased $12.3 million, or 30 percent, compared to the prior year fourth quarter. The increase in North America irrigation revenues resulted from a combination of higher irrigation equipment unit sales volume and higher average selling prices. International irrigation revenues of $71.7 million increased $35.9 million, or 100 percent, compared to the prior year fourth quarter. The increase in international irrigation revenues resulted primarily from higher unit sales volumes, along with higher selling prices and a favorable foreign currency translation impact of $2.8 million. The largest sales volume increases were in the Brazil and Middle East markets.
Irrigation segment operating income for the fourth quarter of fiscal 2021 was $10.6 million, an increase of $4.6 million, or 78 percent, compared to the prior year fourth quarter. Operating margin was 8.4 percent of sales, compared to 7.8 percent of sales in the prior year fourth quarter. The impact of higher irrigation system unit volume was partially offset by the impact of higher raw material and other costs. Fourth quarter operating results were also reduced by approximately $5.0 million resulting from the impact of the LIFO method of accounting for inventory, under which higher raw material costs are recognized in cost of goods sold rather than in ending inventory values.
Infrastructure segment revenues for the fourth quarter of fiscal 2021 were $28.4 million, a decrease of $23.0 million, or 45 percent, compared to $51.4 million in the prior year fourth quarter. The decrease resulted primarily from lower Road Zipper System^®^ sales compared to the prior year. Road Zipper System^®^ sales in the fourth quarter of fiscal 2020 included a large project in the United Kingdom that did not repeat in fiscal 2021. In addition, during fiscal 2021 the timing of certain projects has been impacted by coronavirus-related delays.
Infrastructure segment operating income for the fourth quarter of fiscal 2021 was $5.8 million, a decrease of $14.1 million, or 71 percent, compared to the prior year fourth quarter. Operating margin was 20.5 percent of sales, compared to 38.8 percent of sales in the prior year fourth quarter. Current year results reflect lower revenues and a less favorable margin mix of revenues compared to the prior year fourth quarter and were also reduced by approximately $1.0 million resulting from the impact of the LIFO method of accounting for inventory.
The backlog of unfilled orders at August 31, 2021 was $149.1 million compared with $58.7 million at August 31, 2020. A higher backlog of orders in irrigation was partially offset by a lower backlog in infrastructure.
Outlook
“Although agricultural commodity prices have come down from their peak earlier in the year, they remain at multi-year highs,” said Mr. Wood. “This supports a solid outlook for North America irrigation equipment demand for the fall selling season. We expect growth in international irrigation to be led by continued momentum in Brazil and other markets and from new agricultural development being driven by increased concerns regarding food security.”
Mr. Wood continued, “In our infrastructure business, we expect a slower start to fiscal 2022 due to specific project delays. However, prospects for year-over-year growth are supported by the quality of our project sales funnel.”
Fourth Quarter Conference Call
Lindsay’s fiscal 2021 fourth 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 currentbeliefs 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 Companyfiles 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 orincluding the words “anticipate,” “estimate,” “believe,” “intend,” “expect,” “outlook,” “could,” “may,” “should,” “will,” or similar expressions. Forthese 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 informationcontained in this press release.
2
LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
| Three Months Ended August 31, | Years Ended August 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands, except per share amounts) | 2021 | 2020 | 2021 | 2020 | ||||||||
| Operating revenues | $ | 153,648 | $ | 128,405 | $ | 567,646 | $ | 474,692 | ||||
| Cost of operating revenues | 120,081 | 83,038 | 417,441 | 322,149 | ||||||||
| Gross profit | 33,567 | 45,367 | 150,205 | 152,543 | ||||||||
| Operating expenses: | ||||||||||||
| Selling expense | 8,136 | 9,343 | 30,816 | 31,444 | ||||||||
| General and administrative expense | 12,153 | 14,921 | 51,923 | 52,947 | ||||||||
| Engineering and research expense | 3,855 | 3,647 | 13,359 | 13,950 | ||||||||
| Total operating expenses | 24,144 | 27,911 | 96,098 | 98,341 | ||||||||
| Operating income | 9,423 | 17,456 | 54,107 | 54,202 | ||||||||
| Other (expense) income: | ||||||||||||
| Interest expense | (1,167 | ) | (1,185 | ) | (4,751 | ) | (4,759 | ) | ||||
| Interest income | 285 | 544 | 1,083 | 1,956 | ||||||||
| Other (expense) income, net | (752 | ) | 1,641 | (53 | ) | (2,556 | ) | |||||
| Total other (expense) income | (1,634 | ) | 1,000 | (3,721 | ) | (5,359 | ) | |||||
| Earnings before income taxes | 7,789 | 18,456 | 50,386 | 48,843 | ||||||||
| Income tax expense | 1,985 | 3,782 | 7,814 | 10,214 | ||||||||
| Net earnings | $ | 5,804 | $ | 14,674 | $ | 42,572 | $ | 38,629 | ||||
| Earnings per share: | ||||||||||||
| Basic | $ | 0.53 | $ | 1.35 | $ | 3.91 | $ | 3.57 | ||||
| Diluted | $ | 0.53 | $ | 1.35 | $ | 3.88 | $ | 3.56 | ||||
| Shares used in computing earnings per share: | ||||||||||||
| Basic | 10,907 | 10,835 | 10,886 | 10,823 | ||||||||
| Diluted | 11,039 | 10,880 | 10,985 | 10,861 | ||||||||
| Cash dividends declared per share | $ | 0.33 | $ | 0.32 | $ | 1.30 | $ | 1.26 |
3
LINDSAY CORPORATION AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Unaudited)
| Three months ended | Twelve months ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in thousands) | August 31,2021 | August 31,2020 | August 31,2021 | August 31,2020 | ||||||||
| Operating revenues: | ||||||||||||
| Irrigation: | ||||||||||||
| North America | $ | 53,539 | $ | 41,201 | $ | 273,871 | $ | 224,771 | ||||
| International | 71,715 | 35,824 | 197,487 | 124,575 | ||||||||
| Irrigation total | 125,254 | 77,025 | 471,358 | 349,346 | ||||||||
| Infrastructure | 28,394 | 51,380 | 96,288 | 125,346 | ||||||||
| Total operating revenues | $ | 153,648 | $ | 128,405 | $ | 567,646 | $ | 474,692 | ||||
| Operating income: | ||||||||||||
| Irrigation | $ | 10,578 | $ | 5,979 | $ | 63,181 | $ | 41,263 | ||||
| Infrastructure | 5,810 | 19,934 | 20,174 | 42,722 | ||||||||
| Corporate | (6,965 | ) | (8,457 | ) | (29,248 | ) | (29,783 | ) | ||||
| Total operating income | $ | 9,423 | $ | 17,456 | $ | 54,107 | $ | 54,202 |
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.
4
LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (in thousands) | August 31,<br>2020 | ||||
|---|---|---|---|---|---|
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | 127,107 | $ | 121,403 | ||
| Marketable securities | 19,604 | 19,511 | |||
| Receivables, net of allowance of 3,422 and 2,780, respectively | 93,609 | 84,604 | |||
| Inventories, net | 145,244 | 104,792 | |||
| Other current assets | 30,539 | 17,625 | |||
| Total current assets | 416,103 | 347,935 | |||
| Property, plant, and equipment, net | 91,997 | 79,581 | |||
| Intangible assets, net | 20,367 | 23,477 | |||
| Goodwill | 67,968 | 68,004 | |||
| Operating lease<br>right-of-use assets | 18,281 | 27,457 | |||
| Deferred income tax assets | 8,113 | 9,935 | |||
| Other noncurrent assets | 14,356 | 14,137 | |||
| Total assets | 637,185 | $ | 570,526 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | 45,209 | $ | 29,554 | ||
| Current portion of long-term debt | 217 | 195 | |||
| Other current liabilities | 92,814 | 72,646 | |||
| Total current liabilities | 138,240 | 102,395 | |||
| Pension benefits liabilities | 5,754 | 6,374 | |||
| Long-term debt | 115,514 | 115,682 | |||
| Operating lease liabilities | 18,301 | 25,862 | |||
| Deferred income tax liabilities | 832 | 889 | |||
| Other noncurrent liabilities | 20,099 | 20,806 | |||
| Total liabilities | 298,740 | 272,008 | |||
| Shareholders’ equity: | |||||
| Preferred stock | — | — | |||
| Common stock | 18,991 | 18,918 | |||
| Capital in excess of stated value | 86,495 | 77,686 | |||
| Retained earnings | 528,130 | 499,724 | |||
| Less treasury stock—at cost | (277,238 | ) | (277,238 | ) | |
| Accumulated other comprehensive loss, net | (17,933 | ) | (20,572 | ) | |
| Total shareholders’ equity | 338,445 | 298,518 | |||
| Total liabilities and shareholders’ equity | 637,185 | $ | 570,526 |
All values are in US Dollars.
5
LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Years Ended August 31, | ||||||
|---|---|---|---|---|---|---|
| (in thousands) | 2021 | 2020 | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
| Net earnings | $ | 42,572 | $ | 38,629 | ||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||
| Depreciation and amortization | 19,177 | 19,396 | ||||
| (Gain) on sale of business | (1,087 | ) | — | |||
| Provision for uncollectible accounts receivable | 771 | 589 | ||||
| Deferred income taxes | 1,911 | 1,384 | ||||
| Share-based compensation expense | 6,186 | 5,616 | ||||
| Foreign currency transaction (gain) loss | (1,934 | ) | 1,102 | |||
| Other, net | 259 | 288 | ||||
| Changes in assets and liabilities: | ||||||
| Receivables | (11,535 | ) | (9,523 | ) | ||
| Inventories | (38,158 | ) | (14,039 | ) | ||
| Other current assets | (8,132 | ) | (6,612 | ) | ||
| Accounts payable | 17,993 | (691 | ) | |||
| Other current liabilities | 18,433 | 16,673 | ||||
| Other noncurrent assets and liabilities | (2,488 | ) | (6,778 | ) | ||
| Net cash provided by operating activities | 43,968 | 46,034 | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
| Purchases of property, plant and equipment | (26,511 | ) | (21,445 | ) | ||
| Proceeds from sale of assets<br>held-for-sale | — | 3,955 | ||||
| Purchases of marketable securities<br>available-for-sale | (19,356 | ) | (28,041 | ) | ||
| Proceeds from maturities of marketable securities available-for-sale | 18,825 | 8,548 | ||||
| Acquisition of business, net of cash acquired | — | (3,034 | ) | |||
| Other investing activities, net | (577 | ) | 1,503 | |||
| Net cash used in investing activities | (27,619 | ) | (38,514 | ) | ||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
| Proceeds from exercise of stock options | 3,965 | 1,545 | ||||
| Common stock withheld for payroll tax obligations | (1,269 | ) | (1,111 | ) | ||
| Principal payments on long-term debt | (195 | ) | (227 | ) | ||
| Dividends paid | (14,166 | ) | (13,645 | ) | ||
| Net cash used in financing activities | (11,665 | ) | (13,438 | ) | ||
| Effect of exchange rate changes on cash and cash equivalents | 1,020 | 117 | ||||
| Net change in cash and cash equivalents | 5,704 | (5,801 | ) | |||
| Cash and cash equivalents, beginning of period | 121,403 | 127,204 | ||||
| Cash and cash equivalents, end of period | $ | 127,107 | $ | 121,403 |
6
EX-99.2
4th Quarter Fiscal 2021 Earnings Slide Deck Exhibit 99.2
Safe-Harbor Statement This presentation 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, financial results and planned financing. 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. Investors should understand that a number of factors (including but not limited to the lingering effects of the COVID-19 pandemic and related public health measures on plant operations, workforce availability, supply chain availability, and product demand) could cause future economic and industry conditions and the Company’s actual financial condition and results of operations to differ materially from management’s beliefs expressed in the forward-looking statements contained in this presentation. These factors include those outlined in the “Risk Factors” section of the Company’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission, and investors are urged to review these factors when considering the forward-looking statements contained in this presentation. 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. For full financial statement information, please see the Company’s earnings release dated October 21, 2021.
Fourth Quarter Summary Revenues increased $25.2 million compared to prior year Irrigation increased $48.2 million Infrastructure decreased $23.0 million Operating income decreased $8.0 million compared to prior year results Irrigation increased $4.6 million Infrastructure decreased $14.1 million Operating income reduced by LIFO impact of approximately $6.0 million Net earnings reduced by after-tax LIFO impact of $4.5 million, or $0.41 per diluted share Amounts in millions, except per share amounts Revenue Operating Income Diluted EPS +20% -61% -46%
Fiscal 2021 Summary Revenues increased $93.0 million compared to prior year Irrigation increased $122.0 million Infrastructure decreased $29.0 million Operating income was comparable to prior year results Irrigation increased $21.9 million Infrastructure decreased $22.5 million Corporate expense decreased $0.5 million, primarily due to lower travel-related expenses Amounts in millions, except per share amounts Revenue Operating Income Diluted EPS +20% +9%
Fourth Quarter and YTD Financial Summary Certain immaterial reclassifications have been made to the prior year operating results to conform with the current year presentation, as revenue and operating income from certain product lines included within the infrastructure reporting segment in the prior year are now included within the irrigation reporting segment.
Current Market Factors Agricultural commodity prices improved significantly due to lower yield expectations in the U.S. as well as increased exports to China, with corn prices approximately 66 percent higher and soybean prices approximately 42 percent higher compared to August 2020. 2021 Net farm income is projected by the USDA to be $113.0 billion, an increase of 19.5 percent from 2020. This increase is coming primarily from higher crop and animal receipts. Significant increases in raw material and other costs have resulted in short-term margin pressure until increased costs are fully recovered by price increases. Constraints on availability of raw materials, labor and trucking resources extend lead times for deliveries. Food security has become an increased concern in certain international markets with major disruptions to both supply and demand. Irrigation Infrastructure The five-year $305 billion U.S. highway bill (the “FAST Act”) expired on September 30th. It was extended on October 2nd for one month as lawmakers seek resolution on the proposed infrastructure bill. In August, the Senate passed the $1.2 trillion Infrastructure Investment and Jobs Act, which includes, among other things, $120 billion above-baseline funding for roads, bridges and safety. The House of Representatives will either vote to approve the Infrastructure Investment and Jobs Act by October 31st or Congress will need to pass another short-term extension to the FAST Act. The American Road & Transportation Builders Association reported the year-to-date value of project awards is down 4.3% versus 2020.
Irrigation Segment – Fourth Quarter Summary North America revenue increased $12.3 million Higher irrigation equipment unit sales volume Higher average selling prices International revenue increased $35.9 million Higher irrigation equipment unit sales volume in most international markets, led by Brazil and the Middle East Higher selling prices Favorable foreign currency translation impact of $2.8 million Operating income increased $4.6 million Higher irrigation system unit volume Partially offset by the impact of higher raw material and other costs Operating income reduced by LIFO impact of approximately $5.0 million Revenue Operating Income North America International FY20 FY21 Amounts in millions Certain immaterial reclassifications have been made to the prior year operating results to conform with the current year presentation, as revenue and operating income from certain product lines included within the infrastructure reporting segment in the prior year are now included within the irrigation reporting segment. +100% +78% +30%
Infrastructure Segment – Fourth Quarter Summary Total revenue decreased $23.0 million Lower Road Zipper System® sales United Kingdom project and Japan barrier order in the prior year of approximately $27.0 million Higher Road Zipper System® lease revenue Higher sales of road safety products Operating income decreased $14.1 million Lower revenues from Road Zipper projects Less favorable margin mix of revenues Higher raw material and other costs Operating income reduced by LIFO impact of approximately $1.0 million Revenue Operating Income Amounts in millions Certain immaterial reclassifications have been made to the prior year operating results to conform with the current year presentation, as revenue and operating income from certain product lines included within the infrastructure reporting segment in the prior year are now included within the irrigation reporting segment. -45% -71%
Road Zipper Sales Funnel of $800M+ Tracking 100+ active projects 20+ countries have active opportunities Continue to focus on managing projects through the various stage gates Strong pipeline of projects supports future growth expectations Pre-qualified Leads Expected $150M+ $680M+ Qualified 25-50% Firm 51-75%
Innovation Leadership: Addressing Global Megatrends Capitalizing on global megatrends Key Trends Food Security Water Scarcity Land Availability Mobility Safety Reducing Emissions Labor Savings
Strong Commitment to Sustainable Practices Our mission is to provide solutions that conserve natural resources, enhance the quality of life for people, and expand our world’s potential. Investing in sustainable technologies Improving our operational footprint Empowering and protecting our people Engaging in our local communities Operating with integrity 1 2 3 4 5
Summary Balance Sheet and Liquidity As of August 31, 2021: Available liquidity of $196.7 million, with $146.7 million in cash, cash equivalents and marketable securities and $50.0 million available under revolving credit facility Total debt of $115.7 million, of which $115.0 million matures in 2030 A funded debt to EBITDA leverage ratio (as defined in our credit agreements) of 1.4 compared to a covenant limit of 3.0
Summary of Cash Flow FY21 capital expenditures include $8.5 million to exercise a purchase option for the land and buildings related to the Company’s manufacturing operation in Turkey
Capital Allocation – A Balanced Approach Allocation History Other includes debt repayments, net cash sources/uses from note receivables, net investment hedges, stock compensation and related tax benefits. Ending cash includes marketable securities Targeted cash balance of $60-75 million, including international accounts To support cyclical and seasonal fluctuations in working capital and projected capital expenditures $115 million in Senior Notes maturing on 2/19/30 at annual interest rate of 3.82% The Company’s prioritization for cash use: Working capital to support organic growth New product development Capital expenditures - expected to be $20-25 million in fiscal 2022 Acquisitions that align with strategic priorities Dividend payments Opportunistic share repurchases Allocation Plan