Lindsay Corporation announced results for its fourth quarter ended August 31, 2015. Revenues were $123.5 million versus $147.5 million of revenues in the same prior year period.
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Net earnings (loss) were ($3.2 million) or ($0.28) per diluted share compared with $11.3 million or $0.89 per diluted share in the prior year.
2015 fourth quarter results included a bad debt reserve of $5 million on an account receivable and a reserve of $2.9 million against foreign income tax assets, both related to our business unit in China.
Additionally, the effect of currency exchange rates on operating earnings and non-operating expenses was $2 million. The after tax impact on earnings for these items was $8 million or $0.70 per diluted share.
Total irrigation equipment revenues decreased 23 percent to $96.9 million from $125.8 million in the prior fiscal year's fourth quarter.
U.S. irrigation revenues of $54.6 million decreased 23 percent primarily due to sales resulting from storm damage contributing an estimated $20 million to prior year fourth quarter revenue.
International irrigation revenues of $42.3 million decreased 23 percent due to the impact of currency exchange rates and lower sales in the Middle East. Infrastructure revenues increased 23 percent to $26.7 million due to increases in sales of road safety products and Barrier Transfer Machines.
Gross margin was 27.1 percent of sales, equal to the prior year's fourth quarter. Gross margin in irrigation decreased by less than 1 percentage point while infrastructure gross margins increased by approximately 2 percentage points primarily due to sales mix.
Operating expenses were $30.7 million compared to $23.7 million in the same prior year period. The current period operating expenses include $2.9 million of Elecsys Corporation operating expenses and a $5.0 million bad debt charge. Operating expenses were 24.8 percent of sales in the fourth quarter of fiscal 2015 compared with 16.1 percent of sales in the prior year period. Operating margins were 2.2 percent in the fourth quarter, versus 11.0 percent in the prior year period.
Cash and cash equivalents of $139.1 million were $32.7 million lower than the end of the prior fiscal year. During the quarter the company repurchased 220,277 shares for $18.4 million.
In fiscal 2015 the company repurchased 1,198,089 shares for $96.9 million. At August 31, 2015, $112.1 million remains authorized under the company's share repurchase program.
Backlog of unshipped orders at August 31, 2015 was $48.0 million compared with $79.6 million at August 31, 2014 and $53.2 million at May 31, 2015. The backlog at August 31, 2014 included $12.7 million for the Golden Gate Bridge which was completed in the second quarter of 2015. The current period includes $9.5 million of backlog from Elecsys Corporation.
Total revenues for the year ended August 31, 2015 were $560.2 million, a 9 percent decrease from $617.9 million of revenues in the same prior year period. Net earnings were $26.3 million or $2.22 per diluted share compared with $51.5 million or $4.00 per diluted share in the prior year.
The current year includes charges for the items noted in quarterly results above along with $1.5 million of environmental expenses, $1.8 million of acquisition and integration expenses, and the full year effect of currency exchange rates on operating earnings and non-operating expenses of $3.8 million. The after tax impact on earnings for these items was $11.4 million or $0.96 per diluted share.
Total irrigation equipment revenues decreased 16 percent to $451.2 million from $539.9 million during the prior fiscal year. U.S. irrigation revenues of $273.7 million declined 17 percent with approximately half of the decline due to lower storm damage related sales compared to 2014.
International irrigation revenues of $177.5 million decreased 15 percent with slightly more than half of the decline due to the impact of currency exchange rates. Infrastructure revenues increased 40 percent to $109.0 million due to the Golden Gate Bridge project in the second quarter and increased sales of road safety products. ■