Lindsay Corporation, a global manufacturer and distributor of irrigation and infrastructure equipment and technology, has announced results for its fourth quarter and fiscal year, which ended on Aug. 31, 2020.
Fourth Quarter and Full Year Summary
Revenues for the fourth quarter of fiscal 2020 were $128.4 million, an increase of $26.5 million, or 26%, compared to revenues of $101.9 million in the prior year fourth quarter. Net earnings for the quarter were $14.7 million, compared with net earnings of $1.5 million for the prior year fourth quarter. Net earnings for the prior year fourth quarter adjusted to eliminate costs associated with the Foundation for Growth initiative and a valuation adjustment for indirect tax credits were $5.8 million.
Revenues for the year ended Aug. 31, 2020, were $474.7 million, an increase of $30.6 million, or 7%, compared to revenues of $444.1 million in the prior year. Net earnings for the year were $38.6 million, compared with net earnings of $2.2 million in the prior year. Net earnings for the prior year adjusted to eliminate costs associated with the Foundation for Growth initiative and a valuation adjustment for indirect tax credits were $15.6 million.
Fourth Quarter Segment Results
Irrigation segment revenues for the fourth quarter of fiscal 2020 were $75.6 million, an increase of $6.1 million, or 9%, compared to $69.5 million in the prior year fourth quarter. North America irrigation revenues of $39.8 million decreased $1.8 million, or 4%, compared to the prior year. The decrease resulted primarily from lower engineering services revenue related to a project in the prior year that did not repeat. An increase in irrigation equipment unit volume and higher sales of replacement parts was offset by the impact of lower average selling prices. International irrigation revenues of $35.8 million increased $7.8 million, or 28%. The increase resulted primarily from higher sales volumes in Brazil, Australia and the Middle East which were partially offset by the unfavorable effects of foreign currency translation of approximately $3.4 million compared to the prior year.
Irrigation segment operating margin was 7.7% of sales in the fourth quarter, compared to 5% of sales in the prior year fourth quarter. Operating margin in the current year fourth quarter was negatively impacted by expense of approximately $1.6 million, related to an increase in the environmental remediation liability and severance costs.
Infrastructure segment revenues for the fourth quarter of fiscal 2020 were $52.8 million, an increase of $20.4 million, or 63%, compared to $32.4 million in the prior year. The increase resulted from higher Road Zipper System sales compared to the prior year, including the large project with Highways England in the U.K.
Infrastructure segment operating margin was 38% of sales in the fourth quarter, compared to 28.8% of sales in the prior year fourth quarter. Operating margin improvement resulted primarily from increased sales in higher margin product lines and from improved cost and pricing performance.
The backlog of unfilled orders at Aug. 31, 2020 was $58.7 million compared with $55.4 million at Aug. 31, 2019. Included in these backlogs are amounts of $6.3 million and $10 million, respectively, that are not expected to be fulfilled within the subsequent twelve months.
“The recent increase in agricultural commodity prices along with additional government support payments to farmers under the expanded Coronavirus Food Assistance Program have raised estimates for U.S. farm income,” said Mr. Hassinger. “This supports an improved outlook for North America irrigation equipment demand for the fall selling season. We expect growth in international irrigation led by continued momentum in Brazil and other markets as well as new agricultural development being driven by heightened food security concerns as a result of the global coronavirus pandemic.”
Mr. Hassinger added, “Our infrastructure business achieved a record year in fiscal 2020, in large part due to our success in implementing the “shift left” strategy to expand our addressable market for Road Zipper systems. We continue to be encouraged by the execution of this strategy, which has resulted in a higher quality sales funnel.”