Lindsay Corporation Reports Fiscal 2009 Fourth Quarter, Full-Year Results

Fourth Quarter Results

Fourth quarter fiscal 2009 total revenues of $73.4 million decreased 50 percent from $147.2 million in the same prior year period. Net earnings were $2.1 million or $0.17 per diluted share compared with $11.3 million or $0.90 per diluted share, in the prior fiscal year's fourth quarter.

Total irrigation equipment revenues decreased 53 percent to $54.8 million from $115.2 million in the prior fiscal year's fourth quarter. Domestic irrigation revenues decreased 59 percent, while international irrigation revenues decreased 41 percent as compared to the same prior year period. Infrastructure revenues were $18.6 million compared with $32.0 million in the prior year period, a decrease of 42 percent.

Gross margin was 24.0 percent compared to 25.4 percent a year ago due primarily to unfavorable infrastructure product mix. Operating expenses decreased $3.9 million to $14.1 million compared to the fourth quarter of the prior fiscal year primarily due to lower personnel related costs and were 19.2 percent of sales in 2009 compared with 12.2 percent of sales in the prior year period. Operating income of $3.5 million decreased $15.9 million compared to the prior year period.

Lindsay's backlog of unshipped orders at August 31, 2009 was $43.6 million compared with $40.2 million at May 31, 2009 and $92.3 million at August 31, 2008. The current backlog includes approximately $19.0 million of quick move barrier for the previously disclosed road project in Mexico City. During the fourth quarter, the initial deposit was received for the Mexico City road project and work started on the project.

Full-Year Results

Total revenues for the fiscal year ended August 31, 2009 were $336.2 million, a 29 percent decrease from $475.1 million for the prior year. Total irrigation equipment revenues of $255.5 million declined 32 percent from a year ago. Domestic irrigation revenues decreased 34%, while international irrigation revenues decreased 28% compared to the fiscal year ended August 31, 2008. Infrastructure revenues declined 19 percent to $80.7 million compared to fiscal 2008.

Gross margin was 24.0 percent compared to 26.1 percent for the year ended August 31, 2008 due to decreased volume and changes in product mix. Manufacturing efficiency decreased on irrigation products during fiscal 2009 resulting from significantly reduced factory volume. Gross margin on infrastructure products decreased as a result of unfavorable product mix, manufacturing variances on lower volume, and higher steel costs. The Company's operating expenses of $58.2 million for fiscal 2009 decreased $3.4 million as compared to fiscal 2008. The decrease in operating expenses for fiscal 2009 was primarily attributable to lower personnel related costs.

The Company's operating income for the fiscal year was $22.4 million compared to $62.2 million during the prior year period. Net earnings were $13.8 million or $1.11 per diluted share, as compared to $39.4 million, or $3.20 per diluted share for the prior year period.

On July 20, 2009, Lindsay announced that it had increased its regular quarterly cash dividend by 7 percent to $0.08 per share from $0.075 per share. The new annual indicated rate is $0.32 per share, an increase from the previous annual indicated rate of $0.30 per share.

Outlook

Rick Parod, president and chief executive officer, commented, "Farmers continued to remain cautious throughout the year about making investments in capital goods. Updated USDA estimates predict net farm income for 2009 well below last year's record and 15% below the ten year average. In the US, demand for road infrastructure products was positively impacted by stimulus funds; however, it may now be tempered by uncertainty surrounding federal highway funding. We continue to control expenditures, and our focus on cash flow has resulted in cash and cash equivalents increasing $35.2 million to $85.9 million at year end compared with the end of fiscal 2008. During the year, we also reduced our long-term debt by $6.2 million."

Parod added, "As world population continues to grow, expanded food production, efficient water use, and improvements in transportation infrastructure remain very positive long-term growth drivers for our business segments."

Fourth-Quarter Conference Call

Lindsay's fiscal 2009 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 # 33174497. 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, 2009, Lindsay had approximately 12.4 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 we file 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," "expectation," "outlook," "could," "may," "should," "will," or similar expressions. For these statements, we claim 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.

Lindsay Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                       Years ended August 31,
(in thousands, except per share amounts)                  2009           2008           2007
Operating revenues                                     $  336,228     $  475,087     $  281,857
Cost of operating revenues                                255,597        351,255        212,125
Gross profit                                              80,631         123,832        69,732
Operating expenses:
Selling expense                                           22,361         25,177         17,396
General and administrative expense                        29,816         30,010         23,897
Engineering and research expense                          6,037          6,406          4,680
Total operating expenses                                  58,214         61,593         45,973
Operating income                                          22,417         62,239         23,759
Other income (expense):
Interest expense                                          (2,030  )      (3,035  )      (2,399  )
Interest income                                           934            1,735          2,162
Other income (expense), net                               (782    )      172            611
Earnings before income taxes                              20,539         61,111         24,133
Income tax provision                                      6,716          21,706         8,513
Net earnings                                           $  13,823      $  39,405      $  15,620
Basic net earnings per share                           $  1.12        $  3.30        $  1.34
Diluted net earnings per share                         $  1.11        $  3.20        $  1.31
Weighted average shares outstanding                       12,294         11,936         11,633
Diluted effect of stock equivalents                       167            388            331
Weighted average shares outstanding assuming dilution     12,461         12,324         11,964

Lindsay Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
                                                                 August 31,         August 31,
($ in thousands, except par values)                                   2009               2008
ASSETS
Current Assets:
Cash and cash equivalents                                        $    85,929        $    50,760
Receivables, net of allowance, $1,864, and $1,457, respectively       42,862             88,410
Inventories, net                                                      46,255             53,409
Deferred income taxes                                                 6,881              7,108
Other current assets                                                  7,602              7,947
Total current assets                                                  189,529            207,634
Property, plant and equipment, net                                    59,641             57,571
Other intangible assets, net                                          29,100             30,808
Goodwill, net                                                         24,174             24,430
Other noncurrent assets                                               5,453              5,447
Total assets                                                     $    307,897       $    325,890
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable                                                 $    20,008        $    32,818
Notes payable                                                         -                  1,773
Current portion of long-term debt                                     6,171              6,171
Other current liabilities                                             33,008             42,693
Total current liabilities                                             59,187             83,455
Pension benefits liabilities                                          6,407              5,673
Long-term debt                                                        19,454             25,625
Deferred income taxes                                                 10,391             10,799
Other noncurrent liabilities                                          4,800              4,437
Total liabilities                                                     100,239            129,989
Shareholders' equity:
Preferred stock, ($1 par value, 2,000,000 shares authorized, no       -                  -
shares issued and outstanding)
Common stock, ($1 par value, 25,000,000 shares authorized,            18,129             18,055
18,128,743 and 18,055,292 shares issued at August 31, 2009 and
2008, respectively)
Capital in excess of stated value                                     28,944             26,352
Retained earnings                                                     249,588            239,676
Less treasury stock (at cost, 5,763,448 and 5,843,448 shares at       (91,998 )          (93,275 )
August 31, 2009 and 2008, respectively)
Accumulated other comprehensive income, net                           2,995              5,093
Total shareholders' equity                                            207,658            195,901
Total liabilities and shareholders' equity                       $    307,897       $    325,890

Lindsay Corporation and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
($ in thousands)                                                      Years Ended August 31,
                                                                         2009           2008           2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings                                                          $  13,823      $  39,405      $  15,620
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization                                            10,442         9,253          7,160
Provision for uncollectible accounts receivable                          558            75             60
Deferred income taxes                                                    (1,226  )      (886    )      (2,630  )
Stock-based compensation expense                                         2,140          3,516          2,174
Other, net                                                               1,357          (12     )      (106    )
Changes in assets and liabilities:
Receivables, net                                                         43,316         (37,267 )      (3,497  )
Inventories, net                                                         7,726          (7,959  )      (10,925 )
Other current assets                                                     1,009          113            (2,606  )
Accounts payable                                                         (12,116 )      12,038         4,335
Other current liabilities                                                (6,965  )      10,748         1,604
Current taxes payable                                                    (3,140  )      3,357          (349    )
Other noncurrent assets and liabilities                                  571            (1,868  )      (716    )
Net cash provided by operating activities                                57,495         30,513         10,124
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment                               (10,500 )      (14,093 )      (14,647 )
Proceeds from sale of property, plant and equipment                      21             93             165
Acquisition of business, net of cash acquired                            (3,076  )      (21,028 )      (16,705 )
Proceeds from settlement of net investment hedge                         859            1,124          -
Purchases of marketable securities available-for-sale                    -              (13,860 )      (90,700 )
Proceeds from maturities of marketable securities available-for-sale     -              41,490         79,150
Net cash used in investing activities                                    (12,696 )      (6,274  )      (42,737 )
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under stock compensation plan     1,419          6,530          3,350
Proceeds from issuance of long-term debt                                 -              15,000         13,196
Principal payments on long-term debt                                     (6,171  )      (21,171 )      (5,229  )
Net borrowings on revolving line of credit                               (1,633  )      1,032          -
Excess tax benefits from stock-based compensation                        344            7,263          1,266
Dividends paid                                                           (3,754  )      (3,419  )      (3,090  )
Net cash (used in) provided by financing activities                      (9,795  )      5,235          9,493
Effect of exchange rate changes on cash                                  165            264            798
Net increase (decrease) in cash and cash equivalents                     35,169         29,738         (22,322 )
Cash and cash equivalents, beginning of period                           50,760         21,022         43,344
Cash and cash equivalents, end of period                              $  85,929      $  50,760      $  21,022
SUPPLEMENTAL CASH FLOW INFORMATION
Income taxes paid                                                     $  11,081      $  12,262      $  9,082
Interest paid                                                         $  2,146       $  3,066       $  2,397

SOURCE: Lindsay Corporation

Lindsay Corporation 
Dave Downing, 402-827-6235 
CFO and President -- International Division 
or 
Halliburton Investor Relations 
Jeff Elliott or Geralyn DeBusk, 972-458-8000