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Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10‑Q

 

(MARK ONE)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 31, 2020

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-13419

 

Lindsay Corporation

(Exact name of registrant as specified in its charter)

 

 

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)

 

402829-6800

(Registrant's telephone number, including area code)

 

 

Securities registered pursuant to Section 12(b) of the Act:  

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.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes    No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes    No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:  

 

Large accelerated filer

  ☒  

 

Accelerated filer

  ☐  

Non‑accelerated filer

  ☐  

 

Smaller reporting company

    

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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No 

As of June 26, 2020, 10,834,763 shares of the registrant’s common stock were outstanding.

 

 

 

 


Table of Contents

 

Lindsay Corporation

INDEX FORM 10-Q

 

 

 

 

 

Page

 

 

 

 

 

Part I – FINANCIAL INFORMATION

 

3

 

 

 

 

 

 

 

ITEM 1 – Financial Statements

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations for the three and nine months ended May 31, 2020 and May 31, 2019

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended May 31, 2020 and May 31, 2019

 

4

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets as of May 31, 2020, May 31, 2019, and August 31, 2019

 

5

 

 

 

 

 

 

 

Condensed Consolidated Statements of Shareholders’ Equity for the three and nine months ended May 31, 2020 and May 31, 2019

 

6

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the nine months ended May 31, 2020 and May 31, 2019

 

8

 

 

 

 

 

 

 

Notes to the Condensed Consolidated Financial Statements

 

9

 

 

 

 

 

 

 

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

 

20

 

 

 

 

 

 

 

ITEM 3 – Quantitative and Qualitative Disclosures about Market Risk

 

28

 

 

 

 

 

 

 

ITEM 4 – Controls and Procedures

 

28

 

 

 

 

 

Part II – OTHER INFORMATION

 

29

 

 

 

 

 

 

 

ITEM 1 – Legal Proceedings

 

29

 

 

 

 

 

 

 

ITEM 1A – Risk Factors

 

29

 

 

 

 

 

 

 

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

 

29

 

 

 

 

 

 

 

ITEM 3 – Defaults Upon Senior Securities

 

29

 

 

 

 

 

 

 

ITEM 4 – Mine Safety Disclosures

 

29

 

 

 

 

 

 

 

ITEM 5 – Other Information

 

29

 

 

 

 

 

 

 

ITEM 6 – Exhibits

 

30

 

 

 

 

 

SIGNATURES

 

31

 

- 2 -


Table of Contents

 

Part I – FINANCIAL INFORMATION

ITEM 1 - Financial Statements

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three months ended

 

 

Nine months ended

 

($ and shares in thousands, except per share amounts)

 

May 31,

2020

 

 

May 31,

2019

 

 

May 31,

2020

 

 

May 31,

2019

 

Operating revenues

 

$

123,106

 

 

$

121,054

 

 

$

346,287

 

 

$

342,187

 

Cost of operating revenues

 

 

83,410

 

 

 

91,055

 

 

 

239,111

 

 

 

259,066

 

Gross profit

 

 

39,696

 

 

 

29,999

 

 

 

107,176

 

 

 

83,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling expense

 

 

7,417

 

 

 

7,515

 

 

 

22,101

 

 

 

23,934

 

General and administrative expense

 

 

13,055

 

 

 

14,695

 

 

 

38,026

 

 

 

46,585

 

Engineering and research expense

 

 

3,396

 

 

 

3,314

 

 

 

10,303

 

 

 

10,547

 

Total operating expenses

 

 

23,868

 

 

 

25,524

 

 

 

70,430

 

 

 

81,066

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

15,828

 

 

 

4,475

 

 

 

36,746

 

 

 

2,055

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,197

)

 

 

(1,169

)

 

 

(3,574

)

 

 

(3,552

)

Interest income

 

 

408

 

 

 

525

 

 

 

1,412

 

 

 

1,930

 

Other expense, net

 

 

(2,774

)

 

 

(602

)

 

 

(4,197

)

 

 

(591

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) before income taxes

 

 

12,265

 

 

 

3,229

 

 

 

30,387

 

 

 

(158

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

2,171

 

 

 

332

 

 

 

6,432

 

 

 

(827

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

10,094

 

 

$

2,897

 

 

$

23,955

 

 

$

669

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.93

 

 

$

0.27

 

 

$

2.21

 

 

$

0.06

 

Diluted

 

$

0.93

 

 

$

0.27

 

 

$

2.21

 

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

10,835

 

 

 

10,786

 

 

 

10,818

 

 

 

10,779

 

Diluted

 

 

10,877

 

 

 

10,814

 

 

 

10,854

 

 

 

10,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends declared per share

 

$

0.32

 

 

$

0.31

 

 

$

0.94

 

 

$

0.93

 

 

See accompanying notes to condensed consolidated financial statements.

- 3 -


Table of Contents

 

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

 

 

Three months ended

 

 

Nine months ended

 

($ in thousands)

 

May 31,

2020

 

 

May 31,

2019

 

 

May 31,

2020

 

 

May 31,

2019

 

Net earnings

 

$

10,094

 

 

$

2,897

 

 

$

23,955

 

 

$

669

 

Other comprehensive (loss) income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Defined benefit pension plan adjustment, net of tax

 

 

43

 

 

 

38

 

 

 

129

 

 

 

104

 

Foreign currency translation adjustment, net of hedging activities and tax

 

 

(2,642

)

 

 

(1,831

)

 

 

(3,831

)

 

 

125

 

Unrealized gains on marketable securities, net of tax

 

 

59

 

 

 

 

 

 

121

 

 

 

 

Total other comprehensive (loss) income, net of tax expense of $297, $120, $670 and $421, respectively

 

 

(2,540

)

 

 

(1,793

)

 

 

(3,581

)

 

 

229

 

Total comprehensive income

 

$

7,554

 

 

$

1,104

 

 

$

20,374

 

 

$

898

 

 

See accompanying notes to condensed consolidated financial statements.

- 4 -


Table of Contents

 

LINDSAY CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

($ and shares in thousands, except par values)

 

May 31,

2020

 

 

May 31,

2019

 

 

August 31,

2019

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

102,474

 

 

$

110,839

 

 

$

127,204

 

Marketable securities

 

 

19,012

 

 

 

 

 

 

 

Receivables, net of allowance of $2,607, $2,498, and $2,635,

   respectively

 

 

84,931

 

 

 

94,584

 

 

 

75,551

 

Inventories, net

 

 

113,301

 

 

 

91,091

 

 

 

92,287

 

Assets held-for-sale

 

 

 

 

 

2,744

 

 

 

2,744

 

Other current assets, net

 

 

19,469

 

 

 

17,903

 

 

 

15,704

 

Total current assets

 

 

339,187

 

 

 

317,161

 

 

 

313,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant, and equipment:

 

 

 

 

 

 

 

 

 

 

 

 

Cost

 

 

198,180

 

 

 

188,215

 

 

 

188,695

 

Less accumulated depreciation

 

 

(125,353

)

 

 

(117,848

)

 

 

(119,727

)

Property, plant, and equipment, net

 

 

72,827

 

 

 

70,367

 

 

 

68,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangibles, net

 

 

24,053

 

 

 

25,103

 

 

 

24,382

 

Goodwill

 

 

67,635

 

 

 

64,454

 

 

 

64,387

 

Operating lease right-of-use assets

 

 

27,663

 

 

 

 

 

 

 

Deferred income tax assets

 

 

11,118

 

 

 

8,783

 

 

 

11,758

 

Other noncurrent assets

 

 

15,003

 

 

 

20,054

 

 

 

17,329

 

Total assets

 

$

557,486

 

 

$

505,922

 

 

$

500,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

35,310

 

 

$

37,509

 

 

$

29,434

 

Current portion of long-term debt

 

 

195

 

 

 

208

 

 

 

209

 

Other current liabilities

 

 

71,712

 

 

 

49,102

 

 

 

52,488

 

Total current liabilities

 

 

107,217

 

 

 

86,819

 

 

 

82,131

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension benefits liabilities

 

 

5,787

 

 

 

5,661

 

 

 

6,029

 

Long-term debt

 

 

115,723

 

 

 

115,885

 

 

 

115,846

 

Operating lease liabilities

 

 

26,333

 

 

 

 

 

 

 

Deferred income tax liabilities

 

 

835

 

 

 

918

 

 

 

872

 

Other noncurrent liabilities

 

 

18,633

 

 

 

26,245

 

 

 

27,227

 

Total liabilities

 

 

274,528

 

 

 

235,528

 

 

 

232,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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;

   18,918, 18,870, and 18,870 shares issued, respectively

 

 

18,918

 

 

 

18,870

 

 

 

18,870

 

Capital in excess of stated value

 

 

76,188

 

 

 

70,566

 

 

 

71,684

 

Retained earnings

 

 

488,518

 

 

 

476,580

 

 

 

474,740

 

Less treasury stock - at cost, 8,083 shares

 

 

(277,238

)

 

 

(277,238

)

 

 

(277,238

)

Accumulated other comprehensive loss, net

 

 

(23,428

)

 

 

(18,384

)

 

 

(19,847

)

Total shareholders' equity

 

 

282,958

 

 

 

270,394

 

 

 

268,209

 

Total liabilities and shareholders' equity

 

$

557,486

 

 

$

505,922

 

 

$

500,314

 

 

See accompanying notes to condensed consolidated financial statements.

 

- 5 -


Table of Contents

 

 

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, 2018

 

 

18,841

 

 

 

8,083

 

 

$

18,841

 

 

$

68,465

 

 

$

484,886

 

 

$

(277,238

)

 

$

(18,088

)

 

$

276,866

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

669

 

 

 

 

 

 

 

 

 

669

 

     Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

229

 

 

 

229

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

898

 

Cash dividends ($0.93) per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(10,032

)

 

 

 

 

 

 

 

 

(10,032

)

Issuance of common shares under share compensation plans, net

 

 

29

 

 

 

 

 

 

29

 

 

 

(976

)

 

 

 

 

 

 

 

 

 

 

 

(947

)

Share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

3,077

 

 

 

 

 

 

 

 

 

 

 

 

3,077

 

Cumulative impact of ASC 606 adoption

 

 

 

 

 

 

 

 

 

 

 

 

 

 

532

 

 

 

 

 

 

 

 

 

532

 

Cumulative impact of ASU 2018-02 adoption

 

 

 

 

 

 

 

 

 

 

 

 

 

 

525

 

 

 

 

 

 

(525

)

 

 

 

Balance at May 31, 2019

 

 

18,870

 

 

 

8,083

 

 

$

18,870

 

 

$

70,566

 

 

$

476,580

 

 

$

(277,238

)

 

$

(18,384

)

 

$

270,394

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at August 31, 2019

 

 

18,870

 

 

 

8,083

 

 

$

18,870

 

 

$

71,684

 

 

$

474,740