Third quarter consolidated revenues increase 32 percent to $214.3 million with EPS of $2.28
Irrigation revenues increase 35 percent with an increase in operating income of 65 percent
Infrastructure revenues increase 17 percent as road construction activity levels improve

Lindsay Corporation (NYSE:LNN), a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, today announced results for its third quarter of fiscal 2022, which ended on May 31, 2022.

Third Quarter Summary

Revenues for the third quarter of fiscal 2022 were $214.3 million, an increase of $52.3 million, or 32 percent, compared to revenues of $161.9 million in the prior year third quarter. Net earnings for the quarter were $25.1 million, or $2.28 per diluted share, compared with net earnings of $17.8 million, or $1.60 per diluted share, for the prior year third quarter.

"Global demand for irrigation equipment remained strong in our third quarter, particularly in our international markets. While inflationary pressures continue to persist, we were pleased to see improved price realization across the business," said Randy Wood, President and Chief Executive Officer. "In the infrastructure business, we are starting to see an increase in road construction activity in the U.S., and we also began delivery of one of the Road Zipper System projects we have been expecting in the second half of our year."

Third Quarter Segment Results

Irrigation segment revenues for the third quarter of fiscal 2022 were $188.7 million, an increase of $48.5 million, or 35 percent, compared to $140.2 million in the prior year third quarter. North America irrigation revenues of $96.2 million increased $8.8 million, or 10 percent, compared to the prior year third quarter. The increase in North America irrigation revenues resulted primarily from the impact of higher average selling prices, which was partially offset by lower unit sales volume. International irrigation revenues of $92.5 million increased $39.7 million, or 75 percent, compared to the prior year third quarter. The increase resulted from a combination of higher average selling prices and higher unit sales volumes in most international markets. Revenues in Brazil more than doubled compared to the prior year third quarter. Also contributing were favorable effects of foreign currency translation of approximately $2.5 million compared to the prior year third quarter.

Irrigation segment operating income for the third quarter of fiscal 2022 was $39.6 million, an increase of $15.6 million, or 65 percent, compared to the prior year third quarter. Operating margin was 21.0 percent of sales, compared to 17.1 percent of sales in the prior year third quarter. The increase in operating margin resulted from improved price realization and additional volume leverage, which more than offset the impact of inflationary cost increases.

Infrastructure segment revenues for the third quarter of fiscal 2022 were $25.6 million, an increase of $3.8 million, or 17 percent, compared to $21.7 million in the prior year third quarter. The increase resulted from higher sales of road safety products and Road Zipper System project sales, which were partially offset by lower Road Zipper System lease revenue.

Infrastructure segment operating income for the third quarter of fiscal 2022 was $3.8 million, which was comparable to the prior year third quarter. Operating margin was 14.8 percent of sales, compared to 17.3 percent of sales in the prior year third quarter. Current year results reflect a less favorable margin mix of revenues compared to the prior year third quarter and under absorbed fixed overhead costs.

The backlog of unfilled orders at May 31, 2022 was $98.3 million compared with $120.8 million at May 31, 2021. The backlog in the prior year included an irrigation project order of $36.0 million. Excluding the impact of this order, the irrigation backlog is higher compared to the prior year while the infrastructure backlog is lower.

Outlook

"Global agriculture market fundamentals remain positive; however, grower sentiment in the U.S. is being tempered somewhat by inflationary pressures they are experiencing with their input costs and operational expenses. We continue to see increased activity levels in international project markets as concerns over food security and global grain supplies have been heightened by the ongoing conflict between Russia and Ukraine," said Mr. Wood. "In the infrastructure business, we expect to complete delivery of the Road Zipper System project that began in the third quarter, and we also expect to begin delivery of another significant project in the fourth quarter. We remain optimistic regarding growth opportunities for this business based on the quality of our sales funnel and increasing commercial activity."

Third Quarter Conference Call

Lindsay's fiscal 2022 third 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 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 the Company files 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 or including the words "anticipate," "estimate," "believe," "intend," "expect," "outlook," "could," "may," "should," "will," or similar expressions. 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. The Company undertakes no obligation to update any forward-looking information contained in this press release.

LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)

	Three months ended								Nine months ended
(in thousands, except per share amounts)		May 31, 2022				May 31, 2021				May 31, 2022				May 31, 2021

Operating revenues	$		214,259		$		161,936		$		580,547		$		413,998
Cost of operating revenues			152,579				117,880				438,486				297,360
Gross profit			61,680				44,056				142,061				116,638

Operating expenses:
Selling expense			8,148				7,570				24,070				22,680
General and administrative expense			14,647				12,043				40,548				39,770
Engineering and research expense			3,723				3,102				10,582				9,504
Total operating expenses			26,518				22,715				75,200				71,954

Operating income			35,162				21,341				66,861				44,684

Other income (expense):
Interest expense			(1,006	)			(1,178	)			(3,345	)			(3,584	)
Interest income			118				227				456				798
Other income, net			1,282				764				264				699
Total other income (expense)			394				(187	)			(2,625	)			(2,087	)

Earnings before income taxes			35,556				21,154				64,236				42,597

Income tax expense			10,483				3,357				16,696				5,829

Net earnings	$		25,073		$		17,797		$		47,540		$		36,768

Earnings per share:
Basic	$		2.28		$		1.63		$		4.34		$		3.38
Diluted	$		2.28		$		1.61		$		4.31		$		3.35

Shares used in computing earnings per share:
Basic			10,978				10,907				10,960				10,879
Diluted			11,021				11,033				11,020				10,967

Cash dividends declared per share	$		0.33		$		0.33		$		0.99		$		0.97

LINDSAY CORPORATION AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Unaudited)

	Three months ended									Nine months ended
(in thousands)		May 31, 2022				May 31, 2021				May 31, 2022				May 31, 2021
Operating revenues:
Irrigation:
North America	$		96,153		$		87,364		$		275,601		$		220,332
International			92,540				52,811				239,759				125,772
Irrigation segment			188,693				140,175				515,360				346,104
Infrastructure segment			25,566				21,761				65,187				67,894
Total operating revenues	$		214,259		$		161,936		$		580,547		$		413,998

Operating income:
Irrigation segment	$		39,567		$		23,925		$		81,513		$		52,603
Infrastructure segment			3,779				3,767				6,869				14,364
Corporate			(8,184	)			(6,351	)			(21,521	)			(22,283	)
Total operating income	$		35,162		$		21,341		$		66,861		$		44,684

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.

LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


(in thousands)	May 31, 2022			May 31, 2021			August 31, 2021

ASSETS
Current assets:
Cash and cash equivalents	$	81,757		$	120,801		$	127,107
Marketable securities		13,930			19,663			19,604
Receivables, net		155,518			107,713			93,609
Inventories, net		195,566			136,601			145,244
Other current assets, net		28,663			32,947			30,539
Total current assets		475,434			417,725			416,103

Property, plant, and equipment, net		94,441			92,517			91,997
Intangibles, net		18,769			21,893			20,367
Goodwill		67,476			68,134			67,968
Operating lease right-of-use assets		20,263			19,360			18,281
Deferred income tax assets		7,857			10,247			8,113
Other noncurrent assets, net		27,676			12,341			14,356
Total assets	$	711,916		$	642,217		$	637,185

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	72,350		$	49,351		$	45,209
Current portion of long-term debt		221			216			217
Other current liabilities		101,243			94,589			92,814
Total current liabilities		173,814			144,156			138,240

Pension benefits liabilities		5,474			6,086			5,754
Long-term debt		115,384			115,557			115,514
Operating lease liabilities		20,688			19,369			18,301
Deferred income tax liabilities		730			881			832
Other noncurrent liabilities		15,056			19,995			20,099
Total liabilities		331,146			306,044			298,740

Shareholders' equity:
Preferred stock		—			—			—
Common stock		19,063			18,991			18,991
Capital in excess of stated value		92,516			85,257			86,495
Retained earnings		564,805			525,926			528,130
Less treasury stock - at cost		(277,238	)		(277,238	)		(277,238	)
Accumulated other comprehensive loss, net		(18,376	)		(16,763	)		(17,933	)
Total shareholders' equity		380,770			336,173			338,445
Total liabilities and shareholders' equity	$	711,916		$	642,217		$	637,185

LINDSAY CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Nine months ended
(in thousands)		May 31, 2022				May 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$		47,540		$		36,768
Adjustments to reconcile net earnings to net cash (used in) provided by operating activities:
Depreciation and amortization			14,930				14,688
Provision for uncollectible accounts receivable			734				304
Deferred income taxes			514				205
Share-based compensation expense			4,061				5,021
Unrealized foreign currency transaction gain			(754	)			(1,934	)
Other, net			645				(2,123	)
Changes in assets and liabilities:
Receivables			(63,365	)			(22,934	)
Inventories			(49,209	)			(28,612	)
Other current assets			1,669				(14,025	)
Accounts payable			26,319				20,828
Other current liabilities			822				20,149
Other noncurrent assets and liabilities			(8,840	)			2,325
Net cash (used in) provided by operating activities			(24,934	)			30,660

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant, and equipment			(12,222	)			(22,532	)
Purchases of marketable securities			(18,468	)			(13,067	)
Proceeds from maturities of marketable securities			23,592				12,592
Other investing activities, net			(2,952	)			(1,960	)
Net cash used in investing activities			(10,050	)			(24,967	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options			2,894				3,892
Common stock withheld for payroll tax obligations			(1,181	)			(1,269	)
Proceeds from employee stock purchase plan			319				—
Principal payments on long-term debt			(163	)			(141	)
Dividends paid			(10,865	)			(10,566	)
Net cash used in financing activities			(8,996	)			(8,084	)

Effect of exchange rate changes on cash and cash equivalents			(1,370	)			1,789
Net change in cash and cash equivalents			(45,350	)			(602	)
Cash and cash equivalents, beginning of period			127,107				121,403
Cash and cash equivalents, end of period	$		81,757		$		120,801

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Lindsay Corporation Reports Fiscal 2022 Third Quarter Results