Lindsay Corp 10-Q for FY2023 Q3

Lindsay Corp (LNN)

10-Q 2023-06-29 For: 2023-05-31

Added on April 09, 2026

About this 10-Q

Lindsay Corp filed this 10-Q on June 29, 2023, covering the quarter ended May 31, 2023 (FY2023 Q3).

Headline figures

Quarter ended May 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $164.55M; down 23.2% from $214.26M a year earlier
Net income: $16.88M; down 32.7% from net income of $25.07M a year earlier
Diluted EPS: $1.53; down 32.9% from $2.28 a year earlier

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Delaware		47-0554096
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

18135 Burke Street, Suite 100, Omaha, Nebraska		68022
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 par value	LNN	New York Stock Exchange, Inc.


Large accelerated filer	☒	Accelerated filer	☐
Non‑accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐


		Page

Part I – FINANCIAL INFORMATION		3

	ITEM 1 – Financial Statements	3

	Condensed Consolidated Statements of Earnings for the three and nine months ended May 31, 2023 and May 31, 2022	3

	Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended May 31, 2023 and May 31, 2022	4

	Condensed Consolidated Balance Sheets as of May 31, 2023, May 31, 2022, and August 31, 2022	5

	Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended May 31, 2023 and May 31, 2022	6

	Condensed Consolidated Statements of Cash Flows for the nine months ended May 31, 2023 and May 31, 2022	8

	Notes to the Condensed Consolidated Financial Statements	9

	ITEM 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

	ITEM 3 – Quantitative and Qualitative Disclosures about Market Risk	25

	ITEM 4 – Controls and Procedures	26

Part II – OTHER INFORMATION		27

	ITEM 1 – Legal Proceedings	27

	ITEM 1A – Risk Factors	27

	ITEM 2 – Unregistered Sales of Equity Securities and Use of Proceeds	27

	ITEM 3 – Defaults Upon Senior Securities	27

	ITEM 4 – Mine Safety Disclosures	27

	ITEM 5 – Other Information	27

	ITEM 6 – Exhibits	28

SIGNATURES		29


	Three months ended						Nine months ended
($ and shares in thousands, except per share amounts)	May 31, 2023			May 31, 2022			May 31, 2023			May 31, 2022
Operating revenues	$	164,553		$	214,259		$	506,953		$	580,547
Cost of operating revenues		111,332			152,579			346,454			438,486
Gross profit		53,221			61,680			160,499			142,061

Operating expenses:
Selling expense		8,681			8,148			27,092			24,070
General and administrative expense		13,061			14,647			41,237			40,548
Engineering and research expense		4,522			3,723			13,350			10,582
Total operating expenses		26,264			26,518			81,679			75,200

Operating income		26,957			35,162			78,820			66,861

Other income (expense):
Interest expense		(948	)		(1,006	)		(2,895	)		(3,345	)
Interest income		680			118			1,545			456
Other income (expense), net		(957	)		1,282			(2,000	)		264
Total other income (expense)		(1,225	)		394			(3,350	)		(2,625	)

Earnings before income taxes		25,732			35,556			75,470			64,236

Income tax expense		8,851			10,483			22,320			16,696

Net earnings	$	16,881		$	25,073		$	53,150		$	47,540

Earnings per share:
Basic	$	1.53		$	2.28		$	4.83		$	4.34
Diluted	$	1.53		$	2.28		$	4.80		$	4.31

Shares used in computing earnings per share:
Basic		11,008			10,978			11,001			10,960
Diluted		11,052			11,021			11,063			11,020

Cash dividends declared per share	$	0.34		$	0.33		$	1.02		$	0.99


	Three months ended						Nine months ended
($ in thousands)	May 31, 2023			May 31, 2022			May 31, 2023			May 31, 2022
Net earnings	$	16,881		$	25,073		$	53,150		$	47,540
Other comprehensive (loss) income:
Defined benefit pension plan adjustment, net of tax		39			49			119			146
Foreign currency translation adjustment, net of hedging activities and tax		(507	)		991			(1,385	)		(362	)
Unrealized gain (loss) on marketable securities, net of tax		60			(65	)		132			(227	)
Total other comprehensive (loss) income, net of tax (benefit) expense of ($134), $257, ($552), and $238 respectively		(408	)		975			(1,134	)		(443	)
Total comprehensive income	$	16,473		$	26,048		$	52,016		$	47,097


($ and shares in thousands, except par values)	May 31, 2023			May 31, 2022			August 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	131,577		$	81,757		$	105,048
Marketable securities		12,806			13,930			11,460
Receivables, net of allowance of $5,113, $4,197, and $4,118, respectively		154,167			155,518			138,200
Inventories, net		166,759			195,566			193,776
Other current assets, net		25,943			28,663			28,617
Total current assets		491,252			475,434			477,101

Property, plant, and equipment:
Cost		252,741			239,001			240,981
Less accumulated depreciation		(155,749	)		(144,560	)		(146,509	)
Property, plant, and equipment, net		96,992			94,441			94,472

Intangibles, net		16,860			18,769			18,208
Goodwill		67,441			67,476			67,130
Operating lease right-of-use assets		17,378			20,263			19,181
Deferred income tax assets		11,518			7,857			9,313
Other noncurrent assets		22,177			27,676			25,248
Total assets	$	723,618		$	711,916		$	710,653

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	42,207		$	72,350		$	60,036
Current portion of long-term debt		225			221			222
Other current liabilities		90,616			101,243			100,684
Total current liabilities		133,048			173,814			160,942

Pension benefits liabilities		4,653			5,474			4,892
Long-term debt		115,209			115,384			115,341
Operating lease liabilities		18,119			20,688			19,810
Deferred income tax liabilities		689			730			1,054
Other noncurrent liabilities		15,104			15,056			15,256
Total liabilities		286,822			331,146			317,295

Shareholders' equity:

Preferred stock of $1 par value - authorized 2,000 shares; no shares issued and outstanding		—			—			—
Common stock of $1 par value - authorized 25,000 shares; 19,092, 19,063, and 19,063 shares issued, respectively		19,092			19,063			19,063
Capital in excess of stated value		96,627			92,516			94,006
Retained earnings		620,922			564,805			579,000
Less treasury stock - at cost, 8,083 shares		(277,238	)		(277,238	)		(277,238	)
Accumulated other comprehensive loss, net		(22,607	)		(18,376	)		(21,473	)
Total shareholders' equity		436,796			380,770			393,358
Total liabilities and shareholders' equity	$	723,618		$	711,916		$	710,653


Lindsay Corporation and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
($ and shares in thousands, except per share amounts)
(Unaudited)
	Shares of common stock		Shares of treasury stock		Common stock		Capital in excess of stated value			Retained earnings			Treasury stock			Accumulated other comprehensive loss, net			Total shareholders’ equity
Balance at August 31, 2021		18,991		8,083	$	18,991	$	86,495		$	528,130		$	(277,238	)	$	(17,933	)	$	338,445
Comprehensive income:
Net earnings		—		—		—		—			47,540			—			—			47,540
Other comprehensive loss		—		—		—		—			—			—			(443	)		(443	)
Total comprehensive income		—		—		—		—			—			—			—			47,097
Cash dividends ($.99) per share		—		—		—		—			(10,865	)		—			—			(10,865	)
Issuance of common shares under share compensation plans, net		72		—		72		1,960			—			—			—			2,032
Share-based compensation expense		—		—		—		4,061			—			—			—			4,061
Balance at May 31, 2022		19,063		8,083	$	19,063	$	92,516		$	564,805		$	(277,238	)	$	(18,376	)	$	380,770


Balance at August 31, 2022		19,063		8,083	$	19,063	$	94,006		$	579,000		$	(277,238	)	$	(21,473	)	$	393,358
Comprehensive income:
Net earnings		—		—		—		—			53,150			—			—			53,150
Other comprehensive loss		—		—		—		—			—			—			(1,134	)		(1,134	)
Total comprehensive income		—		—		—		—			—			—			—			52,016
Cash dividends ($1.02) per share		—		—		—		—			(11,228	)		—			—			(11,228	)
Issuance of common shares under share compensation plans, net		29		—		29		(2,154	)		—			—			—			(2,125	)
Share-based compensation expense		—		—		—		4,775			—			—			—			4,775
Balance at May 31, 2023		19,092		8,083	$	19,092	$	96,627		$	620,922		$	(277,238	)	$	(22,607	)	$	436,796

See accompanying notes to condensed consolidated financial statements.


	Nine months ended
($ in thousands)	May 31, 2023			May 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	53,150		$	47,540
Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:
Depreciation and amortization		14,466			14,930
Provision for uncollectible accounts receivable		985			734
Deferred income taxes		(1,548	)		514
Share-based compensation expense		4,775			4,061
Unrealized foreign currency transaction loss (gain)		2,045			(754	)
Other, net		574			645
Changes in assets and liabilities:
Receivables		(15,842	)		(63,365	)
Inventories		25,289			(49,209	)
Other current assets		4,401			1,669
Accounts payable		(17,953	)		26,319
Other current liabilities		(11,865	)		822
Other noncurrent assets and liabilities		691			(8,840	)
Net cash provided by (used in) operating activities		59,168			(24,934	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment		(13,283	)		(12,222	)
Purchases of marketable securities		(4,932	)		(18,468	)
Proceeds from maturities of marketable securities		3,675			23,592
Other investing activities, net		(4,399	)		(2,952	)
Net cash used in investing activities		(18,939	)		(10,050	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options		—			2,894
Common stock withheld for payroll tax obligations		(2,471	)		(1,181	)
Proceeds from employee stock purchase plan		346			319
Principal payments on long-term debt		(166	)		(163	)
Dividends paid		(11,228	)		(10,865	)
Net cash used in financing activities		(13,519	)		(8,996	)

Effect of exchange rate changes on cash and cash equivalents		(181	)		(1,370	)
Net change in cash and cash equivalents		26,529			(45,350	)
Cash and cash equivalents, beginning of period		105,048			127,107
Cash and cash equivalents, end of period	$	131,577		$	81,757


Due within	$ in thousands
1 year	$	225
2 years		229
3 years		234
4 years		78
Thereafter		115,000
	$	115,766


	May 31, 2023
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	131,577	$	—	$	—	$	131,577
Marketable securities:
Corporate bonds		—		11,360		—		11,360
U.S. treasury securities		—		1,446		—		1,446
Derivative asset		—		2,817		—		2,817

	May 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	81,757	$	—	$	—	$	81,757
Marketable securities:
Corporate bonds		—		10,754		—		10,754
U.S. treasury securities		—		3,176		—		3,176
Derivative asset		—		1,080		—		1,080

	August 31, 2022
($ in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	105,048	$	—	$	—	$	105,048
Marketable securities:
Corporate bonds		—		9,668		—		9,668
U.S. treasury securities		—		1,792		—		1,792
Derivative asset		—		5,505		—		5,505


Exhibit
No.		Description

3.1		Restated Certificate of Incorporation of the Company, incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on December 14, 2006.
3.2		Amended and Restated By‑Laws of the Company, effective October 17, 2018, incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on October 19, 2018.
4.1		Specimen Form of Common Stock Certificate, incorporated by reference to Exhibit 4(a) of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended November 30, 2006.
10.1		Lindsay Corporation Nonqualified Deferred Compensation Plan, incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed on May 3, 2022. †
10.2		Lindsay Corporation Nonqualified Deferred Compensation Plan Adoption Agreement, incorporated by reference to Exhibit 10.2 of the Company's Current Report on Form 8-K filed on May 3, 2022. †
31.1*		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
31.2*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
32.1*		Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 18 U.S.C. Section 1350.
101*		Interactive Data Files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language ("Inline XBRL").
104*		Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).


			LINDSAY CORPORATION

	By:		/s/ BRIAN L. KETCHAM
	Name:		Brian L. Ketcham
	Title:		Senior Vice President and Chief Financial Officer
			(on behalf of the registrant and as principal financial officer)



/s/ RANDY A. WOOD		President and Chief Executive Officer
Randy A. Wood		June 29, 2023


	Three months ended						Three months ended
	May 31, 2023						May 31, 2022
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	135,990	$	16,817	$	152,807	$	183,085	$	22,083	$	205,168
Over time		6,581		1,383		7,964		5,608		1,750		7,358
Revenue from the contracts with customers		142,571		18,200		160,771		188,693		23,833		212,526

Lease revenue		—		3,782		3,782		—		1,733		1,733
Total operating revenues	$	142,571	$	21,982	$	164,553	$	188,693	$	25,566	$	214,259


	Nine months ended						Nine months ended
	May 31, 2023						May 31, 2022
($ in thousands)	Irrigation		Infrastructure		Total		Irrigation		Infrastructure		Total
Point in time	$	423,212	$	51,743	$	474,955	$	498,468	$	52,806	$	551,274
Over time		19,218		4,494		23,712		16,892		3,959		20,851
Revenue from the contracts with customers		442,430		56,237		498,667		515,360		56,765		572,125

Lease revenue		—		8,286		8,286		—		8,422		8,422
Total operating revenues	$	442,430	$	64,523	$	506,953	$	515,360	$	65,187	$	580,547


($ in thousands)	May 31, 2023			May 31, 2022			August 31, 2022
Raw materials and supplies	$	82,323		$	93,956		$	93,469
Work in process		12,720			18,941			12,603
Finished goods and purchased parts, net		95,847			105,042			110,022
Total inventory value before LIFO adjustment		190,890			217,939			216,094
Less adjustment to LIFO value		(24,131	)		(22,373	)		(22,318	)
Inventories, net	$	166,759		$	195,566		$	193,776


	Three months ended						Nine months ended
($ in thousands)	May 31, 2023			May 31, 2022			May 31, 2023			May 31, 2022
Product warranty accrual balance, beginning of period	$	14,172		$	12,818		$	14,080		$	12,736
Liabilities accrued for warranties during the period		3,686			3,317			7,814			7,536
Warranty claims paid during the period		(3,369	)		(2,600	)		(7,405	)		(6,601	)
Changes in estimates		—			(58	)		—			(194	)
Product warranty accrual balance, end of period	$	14,489		$	13,477		$	14,489		$	13,477


($ in thousands)	May 31, 2023		May 31, 2022		August 31, 2022
Other current liabilities:
Contract liabilities	$	19,362	$	33,833	$	29,494
Compensation and benefits		19,214		18,243		23,148
Warranties		14,489		13,477		14,080
Tax related liabilities		11,082		7,730		7,820
Dealer related liabilities		9,108		7,046		8,396
Deferred revenue - lease		3,194		1,022		1,064
Operating lease liabilities		2,980		3,329		3,159
Accrued environmental liabilities		2,483		4,934		4,179
Accrued insurance		1,138		1,274		1,193
Other		7,566		10,355		8,151
Total other current liabilities	$	90,616	$	101,243	$	100,684