) earnings per share increased 50% to $1.50 in the second quarter
of fiscal 2013 from $1.00 a share in the year-ago quarter.
Reported results were well ahead of the Zacks Consensus Estimate
of $1.29 per share.
Total revenue improved 33% year over year to $175 million,
beating the Zacks Consensus Estimate of $163 million. The
year-over-year increase in revenues stemmed from a 39%
improvement in total irrigation equipment revenues.
Domestic irrigation revenues rose 41% and international
irrigation revenues increased 34% on increased demand resulting
from higher commodity prices and farm incomes along with drought
conditions in the United States. On the other hand,
infrastructure revenues fell 15% during the quarter.
Cost of operating revenues increased 31% to $125 million. Gross
profit improved 38% to $50.4 million with gross margin expanding
110 basis points to 28.7%. Irrigation margin improved 1%, helped
by strong pricing environment combined with increased
productivity and cost leverage.
Operating expenses improved 19% to $20.9 million in the quarter.
Operating income in the quarter increased 55% to $29.4 million.
Operating margin in the quarter was 17% compared with 14% in the
Lindsay's backlog at the end of second quarter 2013 was $159.3
million compared with $85.1 million at the end of first quarter
2013 and $87.3 million at the end of second quarter 2012.
Cash and cash equivalents were $159.6 million as of Feb 28, 2013
compared with $104.9 million as of Feb 29, 2012. The company
generated $26.2 million in net cash from operating activity in
the first half of fiscal 2013 compared with $4.9 million in the
prior-year comparable period.
Total debt was $3.7 million as of Feb 28, 2013, compared to $6.4
million as of Feb 29, 2012. Debt-to-capitalization ratio improved
to 1.1% as of Feb 28, 2013, from 2.2% as Feb 29, 2012.
Lindsay expects positive farmer sentiment, high farm incomes and
commodity prices to boost irrigation sales. However, expectations
of record crop planting and improved yields are leading to
projections of lower commodity prices, which could lead to
reduced demand in 2013 and 2014. Lindsay expects long-term demand
to remain high, driven by increased food production and efficient
Lindsay Corporation is a leading designer and manufacturer of
self-propelled center pivot and lateral move irrigation systems,
which are used principally for agriculture to increase or
stabilize crop production while conserving water, energy, and
labor. Lindsay retains a Zacks Rank #3 (Hold). Other stocks
in the same industry with favorable Zacks ranks are
Alamo Group, Inc.
Deere & Company
CNH Global NV
), which carry a Zacks Rank #2 (Buy).
ALAMO GROUP INC (ALG): Free Stock Analysis
CNH GLOBAL NV (CNH): Free Stock Analysis
DEERE & CO (DE): Free Stock Analysis
LINDSAY CORP (LNN): Free Stock Analysis
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