Lindsay Corporation, a leading global manufacturer and distributor of irrigation and infrastructure equipment and technology, Thursday announced results for its fourth quarter and fiscal year, which ended on August 31, 2022.
Fourth Quarter and Full Year Summary
Revenues for the fourth quarter of fiscal 2022 were $190.2 million, an increase of $36.5 million, or 24 percent, compared to revenues of $153.6 million in the prior year fourth quarter. Net earnings for the quarter were $17.9 million, or $1.62 per diluted share, compared with net earnings of $5.8 million, or $0.53 per diluted share, for the prior year fourth quarter.
Revenues for the year ended August 31, 2022 were $770.7 million, an increase of $203.1 million, or 36 percent, compared to revenues of $567.6 million in the prior year. Net earnings for the year were $65.5 million, or $5.94 per diluted share, compared with net earnings of $42.6 million, or $3.88 per diluted share, for the prior year.
"Demand for irrigation equipment remained strong across all geographies in our fourth quarter, particularly in North America where damage to existing systems due to severe weather in the Midwest resulted in a large increase in replacement sales. In the infrastructure business, fourth quarter revenue growth was driven by an increase in Road Zipper sales as we began delivery of a large project we had been expecting in the second half of our fiscal year," said Randy Wood, President and Chief Executive Officer. "For the full year, strong growth in our irrigation business led to record consolidated revenues of $770.7 million. We were also pleased that, through effective price management and improved operating performance, we were able to overcome the inflationary headwinds we faced earlier in the year to deliver results that met our annual operating margin objective of 12 percent."
Fourth Quarter Segment Results
Irrigation segment revenues for the fourth quarter of fiscal 2022 were $150.5 million, an increase of $25.2 million, or 20 percent, compared to $125.3 million in the prior year fourth quarter. North America irrigation revenues of $80.1 million increased $26.5 million, or 50 percent, compared to the prior year fourth quarter. The increase in North America irrigation revenues resulted from higher unit sales volumes and higher average selling prices. Higher unit sales volumes resulted primarily from increased storm damage replacement demand compared to the prior year fourth quarter. International irrigation revenues of $70.4 million decreased $1.3 million, or 2 percent, including unfavorable effects of foreign currency translation of approximately $3.5 million compared to the prior year fourth quarter. Strong sales growth in Brazil, Europe and other markets more than offset the impact of a large project in Egypt in the prior year that did not repeat.
Irrigation segment operating income for the fourth quarter of fiscal 2022 was $24.2 million, an increase of $13.6 million, or 129 percent, compared to the prior year fourth quarter. Operating margin was 16.1 percent of sales, compared to 8.4 percent of sales in the prior year fourth quarter. Increased operating income and margin resulted from higher unit sales volumes, improved price realization and lower inflationary headwinds compared to the prior year fourth quarter.
Infrastructure segment revenues for the fourth quarter of fiscal 2022 were $39.7 million, an increase of $11.3 million, or 40 percent, compared to $28.4 million in the prior year fourth quarter. The increase resulted from higher Road Zipper System project sales, which were partially offset by lower Road Zipper System lease revenue.
Infrastructure segment operating income for the fourth quarter of fiscal 2022 was $11.5 million, an increase of $5.7 million or 97 percent compared to the prior year fourth quarter. Operating margin was 28.8 percent of sales, compared to 20.5 percent of sales in the prior year fourth quarter, which is largely due to the increase in Road Zipper System sales.
The backlog of unfilled orders at August 31, 2022 was $96.8 million compared with $149.1 million at August 31, 2021. The irrigation backlog is lower compared to the prior year while the infrastructure backlog is higher.
Outlook
"Current commodity prices and net farm income projections support a positive outlook for North America irrigation equipment demand for the fall selling season, however the ongoing impacts from inflation and supply chain challenges can also impact capital investment decisions for farmers. We expect growth in international markets through expanded production driven by positive agricultural market fundamentals and continuing concerns over food security and global grain supplies," said Wood. "In the infrastructure business, we expect to continue delivery of the large Road Zipper System project during the first quarter of fiscal 2023, and expectations for continued growth in this business are supported by an anticipated increase in U.S. infrastructure spending and by the ongoing management of our project sales funnel."
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