Lindsay Corporation Q1 2015 revenues were $134.8 million
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Net earnings were $7.6 million or $0.62 per diluted share compared with $10.2 million or $0.79 per diluted share in the prior year.
Total irrigation equipment revenues decreased 11 percent to $114.7 million from $129.2 million in the prior fiscal year's first quarter. U.S. irrigation revenues of $62.7 million decreased 21 percent due to a 27 percent decline in the number of irrigation systems sold as a result of the reduction in commodity prices, offset by sales increases in pumping stations and filtration solutions.
International irrigation revenues of $52.0 million increased 4 percent most notably in the Middle East, South Africa and Australia. Infrastructure revenues increased 9 percent to $20.1 million with the primary increase in the road safety product line.
Gross margin was 27.4 percent of sales compared to 27.2 percent of sales in the prior year's first quarter. Gross margin in irrigation decreased by approximately 1 percentage point and infrastructure gross margin increased by approximately 6 percentage points.
Excluding the impact of a higher than normal warranty charge in the prior year, irrigation gross margin decreased by approximately 2.5 percentage points primarily as a result of pricing pressure and increases in input costs. The increase in infrastructure gross margin was primarily due to sales mix and increased leverage on higher sales.
$0.8
million was an increase in operating expenses.
The environmental and acquisition expenses reduced earnings by $0.11 per diluted share on an after tax basis. Operating expenses were 18.5 percent of sales in the first quarter of fiscal 2015 compared with 16.4 percent of sales in the prior year period. Operating margins were 8.8 percent in the first quarter, versus 10.8 percent in the prior year period.
Cash and cash equivalents of $139.3 million were $12.5 million lower compared to the prior year first quarter. The Company repurchased 381,619 shares for $30.0 million during the first quarter and a total of 879,518 shares for $71.1 million since the inception of the program in January 2014. In addition, the Company expects to raise $100 million through a placement of long term debt over the next several months.
Backlog of unshipped orders at November 30, 2014 was $68.3 million compared with $86.6 million at November 30, 2013 and $79.6 million at August 31, 2014. The current and prior year infrastructure backlog includes a $12.7 million Road Zipper System order for the Golden Gate Bridge which is expected to be recognized in revenue in fiscal 2015. ■